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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

           Thursday, January 25, 2018, Vol. 21, No. 018

                            Headlines


A U S T R A L I A

FLEX-ABILITY PTY: Second Creditors' Meeting Set for Feb. 1
HERMOSA WEMBLEY: Second Creditors' Meeting Set for Jan. 31
LOCAL INVERLOCH: Second Creditors' Meeting Set for Jan. 30
NTLV PTY: First Creditors' Meeting Slated for Feb 2
SOLAR POWER: Liquidators Appointed Following Debt Claims

YOGA EVENTS: Owes AUD1.6MM, Liquidator's Report Show


C H I N A

CENTRAL CHINA REAL: Fitch Puts First-Time BB- IDR; Outlook Stable
CIFI HOLDINGS: Fitch Rates USD300MM 5.50% Senior Notes Final 'BB'
FOSUN INTERNATIONAL: Moody's Assigns Ba2 Sr. Unsec. Notes Rating
FOSUN INTERNATIONAL: S&P Rates U.S. Dollar Guaranteed Notes 'BB'
HNA GROUP: Can Manage Cash Crunch, Chairman Says

QIANBAO.COM: China Faces Protests After Investment Scheme Failure
YINGDE GASES: S&P Raises CCR to 'B' With Stable Outlook


I N D I A

ALP MILK: CRISIL Reaffirms B+ Rating on INR8MM Cash Loan
BDH HOTEL: CARE Assigns B+ Rating to INR18cr LT Loan
BORAX MORARJI: CRISIL Withdraws B Rating on INR9MM Cash Loan
CHARTERED HOTELS: CARE Cuts Rating on INR287.41cr LT Loan to D
CHEM CORP: CRISIL Reaffirms 'B' Rating on INR1.25MM Cash Loan

CHENNAI WATER: Ind-Ra Affirms D Ratings on Two Bank Loans
DARIL IMPEX: CRISIL Assigns 'B' Rating to INR5MM Cash Loan
DHEEPTI SPICES: Ind-Ra Affirms B LT Issuer Rating, Outlook Stable
ECO POLYMERS: CARE Moves B Rating to Not Cooperating Category
ELECTRO INTERNATIONAL: CARE Assigns B+ Rating to INR8.25cr Loan

FLOWTECH INDUSTRIES: CRISIL Lowers Rating on INR10MM Loan to B
FRYSTAL PET: CARE Lowers Rating on INR12cr LT Loan to B+
GAYA RAILWAY: CARE Moves B+ Rating to Not Cooperating Category
GOYAL AGENCIES: CRISIL Hikes Rating on INR29MM Cash Loan to B+
H. M. PATEL: CARE Assigns B+ Rating to INR1.50cr LT Loan

IRCON-SOMA TOLLWAY: Ind-Ra Withdraws INR3,813MM Bank Loan Rating
IVRCL INDORE: Ind-Ra Affirms D Rating on INR70MM Bank Guarantee
JINDAL TIMBER: CARE Moves B+ Rating to Not Cooperating Category
KAUSHAL FERRO: CRISIL Reaffirms D Rating on INR21.2MM LT Loan
KISH EXPORTS: CARE Assigns B+ Rating to INR11cr LT Bank Loan

KUMARAN GIN: CRISIL Raises Rating on INR12.5MM Cash Loan to B+
M.P.K STEELS: CARE Moves D Rating to Not Cooperating Category
MOTOR SALES: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable
NIRMAL SPINNING: CARE Moves B Rating to Not Cooperating Category
NUTECH APPLIANCES: CARE Moves B+ Rating to Not Cooperating

R. E. CABLES: CARE Lowers Rating on INR62.80cr LT Loan to D
RAKESH FOLDING: CRISIL Reaffirms B+ Rating on INR5.5MM Loan
RAMKUMAR TEXTILE: CARE Reaffirms B+ Rating on INR1cr LT Loan
RAYALASEEMA EXPRESSWAY: Ind-Ra Affirms D Rating on INR7,030M Loan
REGEN POWERTECH: CARE Cuts Rating on INR905cr Bank Loan to D

ROYALICA TILES: CARE Assigns B+ Rating to INR6.42cr LT Loan
SAMRADDHI COT: CARE Moves D Rating to Not Cooperating Category
SHREE BALA: CRISIL Lowers Rating on INR11MM Term Loan to D
SUN INDUSTRIAL: CARE Assigns B+ Rating to INR6cr LT Loan
SURYANSH AGRO: CARE Assigns B Rating to INR6.33cr LT Loan

SWARNA CONSTRUCTIONS: CRISIL Reaffirms C Rating on INR6MM Loan
TAJ AGRO: CRISIL Assigns B+ Rating to INR10MM Cash Loan
THOMAS & COMPANY: CARE Reaffirms B+ Rating on INR6.5cr LT Loan
TIRUPATI ORGANICS: CARE Assigns B+ Rating to INR6cr LT Loan
VENKATA SRI: CRISIL Reaffirms B+ Rating on INR9.16MM Loan

VINSHIL POLYCHEM: CARE Reaffirms B+ Rating on INR.50cr Loan


I N D O N E S I A

SOECHI LINES: Fitch Affirms B+ IDR; Outlook Remains Negative
SOECHI LINES: Moody's Affirms B1 Corporate Family Rating


J A P A N

TOSHIBA CORP: Considering IPO for Memory Chip Business
TOSHIBA CORP: Completes Sale of Westinghouse Claims


S I N G A P O R E

S I2I: Gets Additional 12-Month Extension to Exit SGX Watch List


                            - - - - -


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A U S T R A L I A
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FLEX-ABILITY PTY: Second Creditors' Meeting Set for Feb. 1
----------------------------------------------------------
A second meeting of creditors in the proceedings of Flex-Ability
Pty Ltd, trading as Flex Medical Training Services, has been set
for Feb. 1, 2018, at 11:30 a.m. at the offices of AMB Insolvency
Level 1, 6 Allison Street, in Bowen Hills, Queensland.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 31, 2018, at 4:00 p.m.

Anne Marie Barley of AMB Insolvency was appointed as
administrator of Flex-Ability Pty on Dec. 7, 2017.


HERMOSA WEMBLEY: Second Creditors' Meeting Set for Jan. 31
----------------------------------------------------------
A second meeting of creditors in the proceedings of Hermosa
Wembley Pty Ltd has been set for Jan. 31, 2018, at 10:00 a.m. at
the offices of HLB Mann Judd (Insolvency WA), Level 3, 35 Outram
Street, in West Perth, WA.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 30, 2018, at 4:00 p.m.

Kimberley Stuart Wallman of HLB Mann was appointed as
administrator of Hermosa Wembley on Jan. 5, 2018.


LOCAL INVERLOCH: Second Creditors' Meeting Set for Jan. 30
----------------------------------------------------------
A second meeting of creditors in the proceedings of The Local
Inverloch Pty Ltd has been set for Jan. 30, 2018, at 11:00 a.m.
at the offices of Vince & Associates, 51 Robinson Street, in
Dandenong, Victoria, on Jan. 30, 2018, at 11:00 a.m.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 29, 2018, at 4:00 p.m.

Peter Robert Vince and Paul William Langdon of Vince & Associates
were appointed as administrators of Local Inverloch on Dec. 13,
2017.


NTLV PTY: First Creditors' Meeting Slated for Feb 2
--------------------------------------------------------
A first meeting of the creditors in the proceedings of N T L V
Pty Ltd will be held at the offices of Ernst & Young, Level 11,
121 Marcus Clarke Street, in Canberra, ACT, on Feb. 2, 2018, at
10:00 a.m.

Henry Kazar & Michael Slaven of Ernst & Young were appointed as
administrators of N T L V Pty on Jan. 22, 2018.


SOLAR POWER: Liquidators Appointed Following Debt Claims
--------------------------------------------------------
John Weekes at Sunshine Coast Daily reports that a court has
ordered a Wide Bay solar power firm be wound up after two
companies said they were owed tens of thousands of dollars.

After a Brisbane Supreme Court hearing, a registrar ordered Solar
Power Wide Bay Burnett be wound up in insolvency, Sunshine Coast
relates.

According to the report, the court file showed GCR Electrical
Systems went to court in November claiming the solar firm owed it
AUD21,161.

Rinnai Australia claimed the Hervey Bay based solar company owed
it AUD67,792, the report discloses.

Solar Power Wide Bay Burnett had been co-operating, liquidator
Anne Meagher of SV Partners said, Sunshine Coast relates.

"The director, as soon as we contacted him, he provided us with
information," the report quotes Ms. Meagher as saying.

She said the solar firm had ceased trading in September last
year.

SV Partners has just been appointed as liquidator and will look
into the firm's assets and liabilities, the report notes.

It will then try to get a distribution of dividend to those owed
money.

GCR filed the court application on November 28, saying it was
owed money, the report says.

GCR director Gary Radke said he was aware of the registrar's
decision but not sure exactly why Solar Power Wide Bay Burnett
had run into apparent financial difficulty, the report adds.


YOGA EVENTS: Owes AUD1.6MM, Liquidator's Report Show
----------------------------------------------------
Bill Hoffman at Sunshine Coast Daily reports that the initial
liquidator's report into the failed company that ran Wanderlust
yoga events in Australia and New Zealand has revealed debts in
the order of $1.6 million.

According to the report, promoter Yoga Events Australia and New
Zealand Pty Ltd has shut down just two months after what had
appeared a highly-successful Novotel Twin Waters Wanderlust
Festival in November.

Sunshine Coast Council which has sponsored the event for the past
three years has expressed surprise and disappointment as news
broke of the company's difficulties, Sunshine Coast Daily says.

Unsecured creditors were furious to see social media posts by
YEANZ Pty Ltd majority shareholder and director John Halstead of
his family's Christmas holiday USA snow trip while they remained
unpaid, the report relates.

According to Sunshine Coast, a council spokesperson said it had
been advised by Wanderlust USA that it had understood events on
the Sunshine Coast had been successful financially as well for
attendees, suppliers, teachers and sponsors.

YEANZ Pty Ltd has run Wanderlust Festivals and Wanderlust 108
events in Australia and New Zealand since 2013 with the council
sponsoring three events at Twin Waters up to and including 2017,
the report states.

"As with all of our event sponsorships, the financial amount is
commercial in confidence," the report quotes a council
spokesperson as saying.

"Initial indications were that the 2017 event was successful in
terms of attendance numbers and participant feedback.

"We are surprised and disappointed to learn of issues regarding
payment of suppliers and the subsequent insolvency of the
promoter who held the Australian and New Zealand licence for
Wanderlust, given the apparent success of the event and the
strength of the global Wanderlust brand.

"Whilst council does not have involvement in the individual deals
done between the promoter and private suppliers, we have made
clear our expectation to the promoter that all local suppliers be
paid.

"We have made contact with the liquidator to ensure that local
businesses are looked after and are working to identify and
assist local impacted businesses where we can.

"No further comment can be made until the proper process, as
stipulated by the appointed liquidator, is finalised."

Sunshine Coast Daily reports that Tourism and Events Queensland
acting chief executive officer Rick Hamilton said it had been
disappointed to learn that the company behind the festival has
been placed into administration, particularly because, as a
tourism event, it was a success.

"TEQ, along with Sunshine Coast Council, was a funding partner
for the Wanderlust 2017 event, and will work with the
administrators as required," the report quotes Mr. Hamilton as
saying.

"The nature of TEQ's agreement with the Wanderlust event
organiser is commercial in confidence, however TEQ is committed
to investing in events that deliver a solid return for tax payer
funds, and investment is usually tied to marketing initiatives.

"The event organiser is solely responsible for costs incurred
during and associated with the operation of the event."



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C H I N A
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CENTRAL CHINA REAL: Fitch Puts First-Time BB- IDR; Outlook Stable
---------------------------------------------------------------
Fitch Ratings has assigned Central China Real Estate Limited
(CCRE) a first-time Long-Term Foreign-Currency Issuer Default
Rating (IDR) of 'BB-' with a Stable Outlook. The agency has also
assigned CCRE a senior unsecured rating of 'BB-'.

CCRE's ratings are supported by the company's competitive
position as a real-estate developer in Henan province with broad
housing product diversification and a growing non-property
development business from rental properties and project
management. Its ratings are also supported by its healthy
financial profile with a low leverage, as measured by net
debt/adjusted inventory that proportionately consolidates its
joint ventures (JVs), of 27% in 2016. CCRE's ratings are
constrained by its aggressive strategy of scale expansion over
the next two years and Fitch expect CCRE's leverage to face
upward pressure to above 30% over this period.

KEY RATING DRIVERS

Solid Position in Henan: Fitch believes CCRE's track record
supports its plan to further strengthen its position by raising
its market share in Henan to 10%-15% in the next three to five
years. CCRE has been developing residential properties almost
entirely in the province over the past 25 years with a presence
across 18 prefecture-level cities and an established reputation.
CCRE's lower average selling price (ASP) of CNY6,635 per square
metre (sq m) compared with peers' ASP of above CNY11,000 per sq m
reflects its wide product exposure, which is not driven only by
the province's larger cities. The diversification helps it
mitigate the risks of policy tightening on housing sales in the
provincial capital, Zhengzhou.

CCRE's contracted sales reached CNY20 billion in 2016, with a
market share of 3.6% in Henan, among the top developers in the
province. CCRE recorded strong sales in 2017 with contracted
sales growth of 51% yoy to CNY30.4 billion, driven by increased
penetration and better sell-through rates in lower-tier cities in
Henan. Fitch expect CCRE's annual contracted sales to grow
further to CNY35 billion-45 billion in 2018-2019.

Growing Non-Development Businesses: Fitch estimate CCRE's non-
development business EBITDA/interest coverage rose to 0.3x at
end-2017 (2016: 0.15x), adding an operating cash flow source
other than development property sales to help the company service
debt. Growth in hotel and rental income, and its recent expansion
into project management of residential property developments in
the province's smaller towns drove the higher contribution from
non-development businesses. CCRE is also expanding into the
development and operation of cultural tourism projects that will
enhance its non-development income in the next three to five
years. Local governments are encouraging cultural tourism
projects, giving CCRE access to lower-cost funding and
alternative land banking channels that improve its financial
flexibility.

Aggressive Land Acquisition in 2017: In 9M17, CCRE replenished
8.2 million sq m in attributable gross floor area of land bank
for CNY9.4 billion, or a land-acquisition-to-contracted sales
value ratio of 0.6x, exceeding the 0.2x-0.3x in previous years.
The more volatile home sales performance in lower-tiered cities
may affect the pace at which CCRE sells its newly acquired
projects and may limit its scope to deleverage. CCRE's leverage
rose to 27% at end-2016 from 17% at end-2015. Fitch expect the
company's leverage to stay above 30% for the next three years on
accelerated land acquisitions.

Fitch believes CCRE's leverage will not rise above 40% as the
company has the flexibility to slow down its land acquisitions
due to a more sizeable land bank of 20.9 million sq m, sufficient
for its development for the next five to six years.

Stabilising Margin: Fitch estimate CCRE's EBITDA margin
(deducting capitalised interest from cost of sales) to be around
16%-17% in 2017-2019. The EBITDA margin fell to 17% in 2016 from
25% in 2014, affected by CCRE's strategy to accelerate inventory
clearance in 1H15. The higher contracted sales ASP in 2017 will
support its EBITDA margin when these projects are being
recognised in the next one to two years and CCRE's EBITDA margin
should stabilise over time.

DERIVATION SUMMARY

CCRE has increased its sales scale to a level comparable with
'BB-' rated peers while maintaining a healthier financial
profile. CCRE's contracted sales of CNY30 billion are comparable
with 'BB-' rated peers such as Yuzhou Properties Company
Limited's (BB-/ Stable) CNY40 billion, China Aoyuan Property
Group Limited's (BB-/Stable) CNY46 billion, and KWG Property
Holding Limited's (BB-/Stable) CNY29 billion. Its Fitch-rated
'BB' peers have higher contracted sales of CNY50 billion-70
billion.

CCRE's leverage of 20% on average in the past four years compares
favourably with 'BB-' rated peers' 30%-45%. CCRE's recent
proactive land acquisitions may increase its leverage to above
30% in the next two years, although most of the newly acquired
land sites are in Henan province, where the company has a well-
established reputation.

CCRE's EBITDA margin of 17% is near the bottom of the 18%-25%
range of 'BB-' rated peers as it has been affected by the
company's destocking strategy since 1H15. Fitch expect the
company's rising contracted sales ASP since 2017 and the
recognition of its projects to stabilise CCRE's EBITDA margin
over time. Fitch have forecast EBITDA margins of 16%-17% in 2017-
2019.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch rating case for the issuer
include:
- Total contracted sales by gross floor area to increase 39% in
   2018 and 24% in 2019
- Average selling price for contracted sales to decrease by 10%
   in 2018 on product mix, and increase 1% in 2019
- EBITDA margin (excluding capitalised interest) at 16%-17% for
   2017-2019
- Land acquisition budget as percentage of total contracted
   sales of 53% for 2017 and 27%-33% for 2018-2019, allowing the
   company to maintain a land-bank reserve of five years of
   contracted sales

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Contracted sales sustained at above CNY50 billion
- Leverage, measured by net debt to adjusted inventory that
   proportionately consolidates its JVs, persistently at 30% or
   below
- Contracted sales to total debt sustained at above 1.5x

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Sustained decline in contracted sales
- Leverage is sustained at 40% or above
- EBITDA margin sustained at below 18%

LIQUIDITY

Sufficient Liquidity: As of 30 June 2017, the company had total
cash of CNY10.9 billion (including restricted cash of CNY1.9
billion), sufficient to cover short-term debt of CNY4.4 billion
maturing in one year (consisting of bank loans of CNY0.9 billion,
other loans of CNY0.8 billion and senior notes of CNY2.7
billion).

Diversified Funding, Lower Costs: CCRE had total debt of CNY15.2
billion as of 30 June 2017, consisting of bank loans, other
loans, senior notes and corporate bonds. There were unutilised
banking facilities amounting to CNY55.7 billion as of 30 June
2017. The average cost of borrowing dropped to 6.9% in 1H17, from
8.9% in 2013 and 7.9% in 2015.


CIFI HOLDINGS: Fitch Rates USD300MM 5.50% Senior Notes Final 'BB'
-----------------------------------------------------------------
Fitch Ratings has assigned China-based property developer CIFI
Holdings (Group) Co. Ltd.'s (BB/Stable) USD300 million 5.50%
senior notes due 2023 final rating of 'BB'.

The notes are rated at the same level as CIFI's senior unsecured
debt rating as they represent direct, unconditional, unsecured
and unsubordinated obligations of the company. The final ratings
are in line with the expected rating assigned on 15 January 2018.

KEY RATING DRIVERS

Larger Scale: Fitch expects CIFI's attributable contracted sales
to quadruple from 2015 levels to around CNY75 billion in 2018
based on its project-launch pipeline and strong land bank. Total
attributable contracted sales for 2017 rose strongly by 88% yoy
to CNY55 billion, after CIFI doubled its number of ready-for-sale
properties. The larger scale gives CIFI a more stable sales base
and greater financial flexibility for land acquisitions. The
average selling price (ASP) of contracted sales in 2017 slightly
decreased to CNY16,500 per sq m from CNY18,200 a year earlier due
to a lower contribution from first-tier cities, where stricter
pricing controls are in place.

Leverage to be Stable: CIFI's net leverage, measured by net
debt/adjusted inventory with proportionate consolidation of JVs
and associates, was 36.1% at end-June 2017. This was higher than
the 29.5% at end-2016, but lower than that of most 'BB' rated
Chinese homebuilders. The low leverage was due to CIFI's prudent
land acquisitions and adoption of the JV model, which improves
operational efficiency and lowers land acquisition and funding
costs. Fitch expects leverage to remain stable for the next 12-18
months because CIFI's land acquisitions in 1H17 have given it
abundant resources for 2018 and it raised HKD2.4 billion in a
share placement at end-July 2017.

Healthy Margin: CIFI's EBITDA margin, excluding the effect of
acquisition revaluation, has been consistently above 25% and
further increased to 28.4% in 1H17, from 25.5% in 1H16. Fitch
expects the margin to continue widening to 30% by 2018 due to its
resilient ASP and low land bank costs, which Fitch estimates at
30% of the contracted ASP. CIFI's large portfolio of projects in
Tier 1 and 2 cities and its shift to offer products that appeal
to upgraders rather than the mass market have enhanced its profit
structure.

Focus on Top-Tier Cities: CIFI has a diversified presence in the
Yangtze River Delta, Pan Bohai Rim, Central Western Region and
Guangdong Province, reducing its exposure to uncertainty in local
policies and economies while providing room to expand. More than
90% of the company's attributable land bank at mid-2017 was in
Tier 1 and 2 cities, which means CIFI is less exposed to the
oversupply plaguing lower-tier cities. In addition, its projects
are spread over 29 cities, helping mitigate risks arising from
policy intervention in individual cities. Nevertheless, strong
and widespread implementation of home-purchase restrictions by
the authorities may slow CIFI's growth.

Lower Funding Costs: CIFI has developed diversified funding
channels, including onshore bonds and offshore bank loans. The
company sold USD285 million in five-year 5.5% bonds in January
2017 and signed a USD303 million four-year offshore club-loan
facility to redeem its USD400 million 8.875% bonds due 2019. It
also issued USD300 million of senior perpetual debt at 5.375% in
August 2017 and another USD300m in December 2017. The proceeds
will be used to refinance its existing borrowings. The company
reduced its average funding cost to 5.0% in 1H17, from 5.5% in
2016. Fitch expects its funding cost to decline further to below
5% in 2018 due to active management of its debt structure.

DERIVATION SUMMARY

CIFI's closest peer is Sino-Ocean Group Holding Limited (BBB-
/Stable: standalone rating: BB) in terms of contracted sales,
land bank size and geographic focus on Tier 1 and affluent Tier 2
cities. CIFI's leverage of around 35% is lower than the 40%
leverage Fitch expects for Sino-Ocean in 2018 and significantly
lower than the above 60% leverage of 'BB' peers, such as
Guangzhou R&F Properties Co. Ltd. (BB/Rating Watch Negative) and
Beijing Capital Development Holding (Group) Co., Ltd. (BBB-
/Negative, standalone rating: BB). CIFI's EBITDA margin of above
25% is also slightly higher than Sino-Ocean's 23%-25%, but in
line with that of Guangzhou R&F and Beijing Capital Development.
However, its nil recurring EBITDA interest coverage is inferior
to Sino-Ocean's 0.4x and Guangzhou R&F's 0.2x.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch rating case for the issuer
- Attributable contracted sales of CNY75 billion in 2018
- Attributable land acquisition at 70% of contracted sales in
   2017 then slowing to 55% in 2018 (2016: 45%)
- Adjusted EBITDA margin improving to around 30% by 2018
- Flattish average land cost in 2018 compared with 2017
   acquisition costs
- 30% dividend payout

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- leverage, measured by net debt/adjusted inventory, sustained
   below 30% (1H17: 36.1%)
- EBITDA margin, excluding the effect of acquisition
   revaluations, of over 30% on a sustained basis (1H17: 28.4%)
- maintaining high cash flow turnover despite the JV business
   model and consolidated contracted sales/debt at over 1.2x
   (1H17: 1.0x)

Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- substantial decrease in contracted sales
- EBITDA margin, excluding the effect of acquisition
   revaluation, below 25% for a sustained period
- net debt/adjusted inventory above 45% for a sustained period

LIQUIDITY

Ample Liquidity: CIFI had unrestricted cash of CNY25.0 billion at
end-June 2017, enough to cover short-term debt of CNY6.5 billion.
The company issued USD285 million in offshore bonds in January
2017 and had approved but unutilised facilities of CNY4.5 billion
at end-June 2017. This will be sufficient to fund development
costs, land premium payments and debt obligations for the next 18
months.


FOSUN INTERNATIONAL: Moody's Assigns Ba2 Sr. Unsec. Notes Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 senior unsecured
rating to the USD notes to be issued by Fortune Star (BVI)
Limited and guaranteed by Fosun International Limited (Fosun, Ba2
stable).

The rating outlook is stable.

The purpose of the proposed bonds is to refinance Fosun's
existing indebtedness and for working capital and general
corporate purposes.

The bond rating also reflects Moody's expectation that Fosun will
complete the bond issuance on satisfactory terms and conditions,
including proper registrations with China's (A1 stable) National
Development and Reform Commission.

RATINGS RATIONALE

"The bond issuance will not materially increase Fosun's leverage
levels, because the company will primarily use the proceeds to
refinance its existing debt at the holding company level," says
Lina Choi, a Moody's Vice President and Senior Credit Officer,
and also Moody's International Lead Analyst for Fosun.

Fosun's Ba2 corporate family rating reflects its: (1) large and
diversified investment portfolio, (2) proven investment track
record, and (3) management's commitment to improve the company's
financial profile.

However, the rating is constrained by Fosun's: (1) moderate
credit contagion risk from investees, (2) complicated
organizational structure, and (3) weak interest coverage at the
holding company level.

The Ba2 rating on the proposed bonds reflects Moody's view that
Fosun's corporate family rating is unaffected by structural
subordination to claims at the operating company level.

Despite its status as a holding company with a majority of the
group's claims at the operating subsidiary level, the group's
diversified business profile - with cash flow generation across a
large number of operating subsidiaries and investees in its
investment portfolio with a global presence - mitigates
structural subordination risks.

The stable ratings outlook reflects Moody's expectation that
Fosun will: (1) pursue its stated business strategies, (2)
refrain from aggressive debt-funded acquisitions, and (3)
actively manage its investments and asset disposals and access to
capital to keep refinancing risk under control.

Upward ratings pressure could emerge if Fosun improves: (1) its
business profile with more stable quality core businesses, (2)
dividends and interest income/interest and operating expenses
coverage to above 1.5x at the holding company level, and (3) its
liquidity position.

On the other hand, downward ratings pressure could arise if: (1)
the company's financial profile deteriorates significantly as a
result of large debt-funded investments, (2) the quality of its
investment portfolio deteriorates and/or contagion risk from its
investees rises, or (3) the company shows an increased reliance
on short-term funding, resulting in higher refinancing risk.

The principal methodology used in these ratings was Investment
Holding Companies and Conglomerates published in December 2015.

Fosun Group was founded in 1992. Fosun International Limited
(Fosun), the holding company of Fosun Group, is headquartered in
Shanghai and listed on the Hong Kong Stock Exchange in 2007.

As an investment holding company, Fosun's principal businesses
are in integrated finance (wealth) and industrial operations. The
estimated market value of Fosun's investment portfolio totaled
around RMB200 billion as of year-end 2016. The consolidated
group's revenue totaled RMB74 billion in 2016.

At December 31, 2016, Fosun was 71.55% beneficially-owned by its
chairman and co-founder, Mr. Guangchang Guo and the company's two
other co-founders.


FOSUN INTERNATIONAL: S&P Rates U.S. Dollar Guaranteed Notes 'BB'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' long-term issue rating to
the proposed U.S. dollar-denominated senior unsecured notes that
Fosun International Ltd. (Fosun) will unconditionally and
irrevocably guarantee. Fortune Star (BVI) Ltd., a special purpose
entity, will issue the notes. The rating is subject to S&P's
review of the final issuance documentation.

The rating on the notes is the same as the corporate credit
rating on Fosun (BB/Stable/--) because of credit substitution
under the guarantee. As an investment holding company, Fosun's
secured debt at the parent level is less than 50% of the total
debt at the parent level. Therefore, S&P does not notch down the
issue rating for structural subordination risk.

Fosun also plans a retap of its U.S. dollar-denominated 5.375%
senior unsecured notes due December 2020, under the same terms
and conditions. The notes are also issued by Fortune Star (BVI)
Ltd. and unconditionally and irrevocably guaranteed by Fosun. The
retap will not affect S&P's 'BB' rating on the proposed notes.
The proceeds from the retap and the proposed notes will be used
for refinancing, working capital, and other general corporate
purposes.

The stable outlook on the corporate credit rating on Fosun
reflects S&P's expectation that the company could maintain a
well-diversified asset portfolio and gradually improve its asset
liquidity via asset capitalization and IPOs. A diversified
portfolio supports Fosun's flexibility in navigating industry
cyclicality and avoiding concentration risk in single markets.
S&P expects the company will maintain its leverage while making
investments and disposal plans.


HNA GROUP: Can Manage Cash Crunch, Chairman Says
------------------------------------------------
Reuters reports that HNA group chairman Chen Feng has expressed
confidence that China's aviation-to-financial services
conglomerate will manage its cash crunch, and continue to receive
support from banks and other financial institutions this year.

The liquidity problem exists "because we made a big number of
mergers", even as the external environment became more
challenging and China's economy "transitioned from rapid to
moderate growth", impacting the group's access to new financing,
Mr. Chen told Reuters in a rare meeting.

"Rate hikes by the Federal Reserve and deleveraging in China
caused a liquidity shortage at the end of the year for many
Chinese enterprises," Reuters quotes Mr. Chen as saying. "We're
confident we'll move past these difficulties and maintain
sustained, healthy and stable development."

It was a rare acknowledgement by a top company official that HNA
is facing financing problems, the report says. In recent weeks,
local banks have privately and publicly voiced concern after HNA
failed to repay some obligations, including aircraft lease
payments, and as surging debt drove up the cost of the group's
short-term fundraising to new highs, according to Reuters.

Reuters says significant moves are expected. HNA's flagship
Hainan Airlines Holding Co; Bohai Capital Holding Co, the parent
of aircraft leasing firm Avolon; and Tianjin Tianhai Investment,
which controls California-based Ingram Micro Electronics, have
suspended trading pending major announcements, the report notes.

Ingram Micro, which HNA bought for roughly USGD6 billion (SGD8
billion), is part of the USGD50 billion worth of transactions the
conglomerate announced over the last two years. They also
included big stakes in Hilton Hotels Worldwide Holdings and
Deutsche Bank.

According to Reuters, HNA chief executive Adam Tan said in
November that the company was selling some real estate and other
assets to improve liquidity and comply with national policy.

Reuters relates that Mr. Chen, speaking at his office in Haikou,
southern China, where HNA Group has its headquarters, said he was
not involved in decision making for any transactions and declined
to comment on fundraising plans.

After years of "extraordinary development", Mr. Chen said that
HNA was now focused more on integrating operations, creating
synergies between resources at home and overseas, and improving
group management, Reuters relays.

"Our business has become so big that we need to improve
efficiency," Reuters quotes Mr. Chen as saying. "The long-term
goal remains unchanged, which is to become a world-class
enterprise," he added. "2018 is our year of effectiveness."

HNA's leverage has alarmed some analysts and its "aggressive
financing policy" caused S&P Global Ratings in November to
downgrade its assessment of the company's credit-worthiness,
Reuters relays. In December, HNA said it received pledges of
support for 2018 from eight big domestic policy and commercial
banks, including China Development Bank, Export and Import Bank
of China, and Industrial and Commercial Bank of China, the report
adds.

According to Reuters, the company also said it still had
CNY310 billion (SGD64 billion) in unused credit facilities from
financial institutions.

Mr. Chen said financial institutions continued to support HNA
because of the quality of its assets and projects. "We provide
local employment, tax revenue and development," he added.

As challenges multiplied, Mr. Chen said it was unreasonable to
expect HNA to "fully grasp" the situation at once. Digesting the
group's acquisitions and integrating operations would "take some
time", he said. "So we're doing it piece by piece," Reuters
relays.

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

Bloomberg News said HNA has been facing increasing pressure --
some banks are said to have frozen some unused credit lines to
HNA units after they missed payments -- after a debt-fueled
acquisition spree that left it with global assets ranging from
hotels and refrigerated trucks to aviation and car rentals.


QIANBAO.COM: China Faces Protests After Investment Scheme Failure
-----------------------------------------------------------------
Joe McDonald at The Associated Press reports that Chinese
authorities are struggling to quell protests following the
collapse of Qianbao.com, an investment scheme police say took as
much as $4.7 billion from millions of depositors.

According to the AP, the implosion of Qianbao.com adds to a
string of failures of Chinese financial ventures blamed on fraud
or mismanagement that have prompted protests and complaints of
official indifference to the suffering of small investors. In a
separate case, the founder of an online lender was sentenced in
September to life in prison on charges he defrauded investors of
$7.7 billion, the report says.

On Jan. 22, hundreds of people marched in freezing weather in the
eastern city of Nanjing in Jiangsu province, where Qianbao was
founded in 2012, shouting for the government to take action, the
report says. A video shot by a demonstrator showed police
carrying some people away while others shouted, "The Jiangsu
government is beating people!"

"Don't organize and don't participate in illegal activities," the
official Xinhua News Agency told readers in a report on
Qianbao.com, the AP relays.

Nanjing police detained 11 people on charges of "disturbing
public order" for setting up social media accounts to organize
protests, the police department announced Jan. 23 on its
microblog account, according to the AP.

Depositors protested in Nanjing on Dec. 12 after they lost access
to online accounts, according to Zhan Jianfu, an employee of an
auto dealership in the western city of Mianyang, the AP reports.
He said he invested several hundred thousand yuan (tens of
thousands of dollars) in Qianbao.

"We failed to get a response and some of the investors were
intercepted and beaten up," the AP quotes Mr. Zhan as saying in
telephone interview.

Qianbao had as many as 200 million registered users, the AP
discloses citing Chinese news reports. The founder, Zhang Xiaolei
- dubbed "China's most notorious swindler" by one newspaper -
turned himself in Dec. 26 to Nanjing police.

Unlike some legitimate Chinese investment vehicles that spun out
of control, police and news reports describe Qianbao as a
brazenly fraudulent Ponzi scheme, according to the report.

The AP relates that the company, which moved to Shanghai in 2015,
promised returns of up to 60 percent a year. Depositors were paid
what Qianbao said were wages for simple tasks such as watching
online ads.

Some of the CNY30 billion ($4.7 billion) raised from depositors
was used to buy businesses including a soccer team and a producer
of glycerine, but only 20 of the more than 70 companies Qianbao
said it owned really existed, according to a statement by Nanjing
police cited by the AP. Profits were too small to pay such high
returns, so Qianbao used money from new depositors, the report
states.


YINGDE GASES: S&P Raises CCR to 'B' With Stable Outlook
--------------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating
on Yingde Gases Group Co. Ltd. (Yingde) to 'B' from 'CCC+'. The
outlook is stable. S&P said, "We also raised the issue rating on
the company's guaranteed senior unsecured notes due in 2018 and
2020 to 'B' from 'CCC'. We removed all the ratings from
CreditWatch, where they were placed with positive implications on
Jan. 3, 2018.

"At the same time, we assigned our 'B' long-term issue rating to
Yingde's guaranteed USGD500 million five-year senior unsecured
notes due 2023, which are issued by Yingde Gases Investment Ltd.
Yingde is an industrial gas supply company in China.

"We upgraded Yingde because we expect the new notes issuance to
stabilize the company's liquidity position over the next 12
months. Yingde will use the notes proceeds to refinance its
outstanding USGD391 million notes due in April 2018 and other
offshore debt.

"We anticipate that Yingde's business performance will remain
stable in the next 12 months. The company is likely to maintain
its leading position in the niche on-site industrial gas supply
market in China. We expect the company to maintain its long-term
relationships with customers, given its captive business nature.
Yingde's operations were stable in 2017 despite a shareholders'
dispute in late 2016 and a change in owner to PAG Asia Capital in
April 2017. However, the company's business will remain
constrained by its high customer concentration risk in the steel
industry, which is subject to de-capacity.

"We generally believe that financial sponsors will exercise
aggressive financial policies to maximize their own return.
Therefore, we expect PAG's ownership to continue to constrain
Yingde's financial risk profile. We need a longer track record to
assess whether Yingde's current deleveraging strategy is
sustainable. We believe the company is still undergoing the
process of re-shaping its capital structure. Once Yingde has
stabilized its capital structure, we cannot rule out debt-
financed dividends or other actions to reward the private equity
owners. We assess Yingde's financial risk profile as highly
leveraged based on the above factors.

"We now assess Yingde's management and governance as fair
following the complete change in the management team after PAG
became Yingde's owner. Our assessment of a company's management
and governance is evidence-based. We are not aware of any
deficiency in the new management team so far.

"The stable outlook reflects our expectation that Yingde's
operation will remain stable under the new owner. We expect the
company will maintain its leading position in the niche on-site
industrial gas supply market in China over the next 12 months.
Our rating factors in the need for some financial buffer, given
the company is owned by a financial sponsor.

"We may lower the rating if Yingde's EBITDA interest coverage
falls below 2.0x on a sustained basis. This could happen if: (1)
the company's leverage increases materially due to aggressive
expansion of new projects, debt-funded acquisitions, or debt-
financed dividends; or (2) its profitability materially weakens
because of a deterioration in operations.

"We could raise the rating if the financial sponsor PAG
demonstrates strong financial discipline with prudent financial
policies on Yingde such that we believe Yingde's deleveraging
trend is sustainable."



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


ALP MILK: CRISIL Reaffirms B+ Rating on INR8MM Cash Loan
--------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on
the long-term bank facilities of ALP Milk Foods Private Limited
(ALP).

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

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

   Term Loan              7.5      CRISIL B+/Stable (Reaffirmed)

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

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: The company's modest scale,
indicated by topline of INR62.91 crore in fiscal 2017, limits
bargaining power with suppliers and customers.

* Exposure of operating margin to volatility in raw material
prices: ALP's operations are susceptible to risks related to
volatility in the price of raw milk, a key ingredient for
processing of ghee, SMP, dairy whitener, and dairy creamer.
Moreover, prices of ghee and SMP often do not increase in tandem
with an increase in raw milk prices. Additionally, the promoters'
focus on establishing the company's brand requires them to give
aggressive discounts, which are likely to constrain
profitability. As the liquid milk market is dominated by
established brands such as Mother Dairy and Amul, ALP is likely
to be a price follower and keep its prices more competitive to
push sales.

Strengths

* Experience of promoters in the agriculture industry: ALP's key
promoter Mr Rajeev Kumar entered the milk products business
because of his experience in the agriculture industry and
established relationships with farmers through group companies.
The key promoter, through his rice-milling unit, already had an
established network of farmers engaged in milk production.

* Moderate financial risk profile: Financial risk profile is
supported by comfortable debt protection metrics, with interest
coverage ratio of 5.07 times and net cash accrual to total debt
ratio of 0.34 time for fiscal 2017. However, gearing was high at
2.85 times as on March 31, 2017 but improved from 4.16 times as
compared to previous year on account of repayment of term loan
from subsidy receipt which helped to reduce debt burden.

Outlook: Stable

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

ALP was incorporated in December 2012, and is managed by its key
promoter Mr Rajeev Kumar. The company manufactures milk and milk
products, such as ghee and skimmed milk powder, under its Maa
Anjani brand. Its manufacturing facility is at Firozabad in Uttar
Pradesh.


BDH HOTEL: CARE Assigns B+ Rating to INR18cr LT Loan
----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of BDH
Hotel & Resort (BDH), as:

                       Amount
  Facilities         (INR crore)   Ratings
  ----------         -----------   -------
  Long Term Bank
  Facilities             18.00     CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of BDH is constrained
on account of implementation and stabilization risk associated
with on-going debt-funded capex. The rating is further
constrained on account of partnership nature of its constitution
and inherent cyclical nature of competitive hotel industry.

The rating, however, derives strength from long standing
experience of partners in diversified businesses, strategic
location of hotel and its association with renowned brand
'Ramada'.

The ability of BDH to successfully complete its on-going capex of
constructing hotel within the envisaged time and cost parameters
will remain the key rating sensitivity. Further, achieving
envisaged level of scale of operations and high occupancy ratio
by attracting higher number of visitors, in light of competition
from other established players would also remain crucial.

Detailed description of the key rating drivers

Key Rating Weaknesses

Project implementation and stabilization risk associated with on-
going debt-funded capex: BDH is currently implementing a
greenfield project to construct hotel. The total cost of the
project is envisaged at INR30 crore which is to be funded through
debt-equity mix of 1.50 times. The operation of new hotel is
envisaged to commence from October 2018. With majority of the
cost yet to incur towards the project, BDH is exposed to project
implementation and subsequent stabilization risk.

Partnership nature of constitution: There is inherent risk of
possibility of withdrawal of capital and dissolution of the firm
in case of death/retirement/insolvency/personal contingency of
any of the partners.

Inherent cyclical nature of competitive hotel industry: Hotel
industry is inherent cyclical in nature with its demand linked to
the performance of the economy. The performance of hotel also
depends upon the parameters like location of property, demand
supply scenario; target customers etc. Also, Indian hotel
industry is highly fragmented in nature with presence of large
number of organized and unorganized players spread across all
regions, which intensifies competition.

Key Rating Strengths

Long standing experience of partners in diversified businesses:
The firm is promoted by Mr. Bhimjibhai D. Hadia and his four
sons. Mr. Bhimjibhai Hadia, aged about 60 years and Mr.
Pravinbhai Hadia, aged about 40 years both have over 20 years of
experience in civil construction, transport and readymade garment
business. All the partners of BDH are also directors of ICC
Projects Private Limited, an associate concern engaged in
construction business.

Strategic location of hotel and its association with renowned
brand 'Ramada': The site for the project is at prime locations in
residential zone of, Adipur (Gandhidham), which is well connected
by railway, bus, airway and port. Also, the entity has obtained
franchisee from Wyndham Hotels and Resorts Group, to use brand
name "Ramada" for 20 years, which has a very large web of
renowned hotels and resorts with global footrprints.

Gandhidham-based (Gujarat), BDH Hotel & Resort (BDH) is a
partnership firm established on 4th February, 2006, originally in
the name Krishna Block Industries. The name of firm was changed
to its present name, i.e. 'BDH Hotel & Resort' w.e.f.7th April,
2016 as per Deed of Reconstitution executed on 7th April, 2016.
The firm is promoted by Mr. Bhimjibhai D. Hadia and his four
sons, Mr. Pravin B. Hadia, Mr. Naresh B. Hadia, Mr. Naveen B.
Hadia and Mr. Ishwar B. Hadia. Hadia family is into the business
of construction since about last twenty years in Gandhidham and
works as a Government approved Civil Contractor through their
association with group concerns like Ishwar Construction Company,
ICC Projects Pvt. Ltd. and The Bella, which are into businesses
like construction, transportation and trading of readymade
garments.

BDH is constructing a hotel and has entered into agreement with
Wyndham Hotels and Resorts Group to use its brand name "Ramada"
for 20 years. BDH has paid initial non-refundable fees to Wyndham
Group for the said agreement. The name for the hotel is proposed
as "Ramada Gandhidham Shinay" situated at Survey No.496 /35,
Vill. Shinay, Tal. Gandhidham, Dist. Kutch, Gujarat and is
expected to start its operations from October 2018. It will be a
4 star hotel consisting of total 58 Spacious rooms, delightful
range of in-house dining venues, Swimming Pool, Spa, Club Lounge,
Fitness Center and 2 Banquet halls with modern conveniences
offered for leisure & business travellers.


BORAX MORARJI: CRISIL Withdraws B Rating on INR9MM Cash Loan
------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities
of Borax Morarji Limited (BML). BML stands amalgamated with The
Dharamsi Morarji Chemical Company Limited (DMCC), a group
company, vide an Order of the National Company Law Tribunal dated
Oct. 18, 2017, and the company ceased to exist w.e.f. Nov. 2017.
The rating action is in line with CRISIL's policy on withdrawal
of bank loan ratings.

                      Amount
   Facilities        (INR Mln)    Ratings
   ----------        ---------    -------
   Bank Guarantee        2        CRISIL A4/Watch Positive

   Cash Credit           9        CRISIL B/Watch Positive

   Letter of Credit     19.5      CRISIL A4/Watch Positive

   Proposed Long Term
   Bank Loan Facility    .22      CRISIL B/Watch Positive

BML, incorporated in 1964, was into manufacturing of boric acid,
borax, borax derivatives, and other specialty boron chemicals and
was managed by Morarji family. The company has been amalgamated
with the group company DMCC, which is primarily into
manufacturing of sulphuric acid.


CHARTERED HOTELS: CARE Cuts Rating on INR287.41cr LT Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Chartered Hotels Private Limited (CHPL), as:

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long Term Bank
  Facilities
  (TLAxis Bank)        40.11     CARE D Reaffirmed

  Long Term Bank
  Facilities (TL)     287.41     CARE D Revised from CARE B

  Short Term Bank
  Facilities (BG)      26.00     CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating reaffirmation on Axis Bank loans was on account of
continuing delays in interest servicing. The revision in the
ratings for the other loans of CHPL takes in to account the
recent delay in debt servicing.

Detailed description of the key rating drivers

Delays in interest repayment of term loan on account of delay in
financial closure of additional loans towards the Luknow project
due to change in scope of the project.

Chartered Hotels Private Limited (CHPL), incorporated in 1996,
subsidiary of Saraf Hotels Limited (SHL). CHPL and SHL are
part of the Saraf Hotel Enterprises that has over 30 years of
experience in hotel, tourism and travel industry and over 22
years of experience in Indian hospitality market. CHPL plans to
tap the mid-market segment/full service segment for business by
setting up 4 star and 5 star hotels in tier-2 cities - Raipur (4
star), Hampi (4 star), Lucknow (5 star) & Guwahati (5 star). The
company has entered into a management-cum-marketing agreement
with Hyatt International Corporation for all the 4 hotels.


CHEM CORP: CRISIL Reaffirms 'B' Rating on INR1.25MM Cash Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities
of Chem Corporation (CC) at 'CRISIL B/Stable/CRISIL A4'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           1.25      CRISIL B/Stable (Reaffirmed)

   Letter of Credit      4         CRISIL A4 (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     .75      CRISIL B/Stable (Reaffirmed)

The ratings continue to reflect CC's modest scale of operations,
volatile operating margin and large working capital requirement.
These weaknesses are partially offset by the extensive experience
of its proprietor in the chemical trading business.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operation: Limited product basket, moderation
in demand and intense competition is expected to continue to
constrain scale of operation over the medium term'revenues were
INR7.9 crore in fiscal 2017.

* Fluctuating operating margin: Exposure to foreign exchange
(forex) risk and also fluctuation in crude oil prices kept
operating margin at 7-10% in the 4 years ending March, 2017. With
forex exposure remaining unhedged, operating margin is expected
to remain volatile.

* Large working capital requirement: Gross current assets (GCAs)
of 165 days as on March 31, 2017 reflect large working capital
requirement. GCAs have fallen from over 200 days for five years
ending March 31, 2016 majorly due to declining scale of operation
over the last 3 years.

Strength

* Extensive experience of the proprietor: Benefits from the
proprietor's over two decades of experience in the industry and
established relationships with customers and suppliers should
support business. The benefits include expanding product profile
and customer base to 10-12 major chemicals, and 300 clients,
respectively.

Outlook: Stable

CRISIL believes CC will continue to benefit from the extensive
experience of, and financial support received from, the
proprietor. The outlook may be revised to 'Positive' if
significant ramp-up in scale of operation, efficient working
capital management, or sizeable capital infusion, strengthens
financial risk profile. The outlook may be revised to 'Negative'
if low cash accrual, or stretch in working capital cycle weakens
liquidity.

Set-up in 1994, CC is a proprietorship firm of Mr Hitesh Shah.
The firm, sells imported organic chemicals, mainly hydrocarbons,
in the domestic market. It caters to end-user industries such as
pharmaceuticals, rubber, and agro-chemicals.


CHENNAI WATER: Ind-Ra Affirms D Ratings on Two Bank Loans
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Chennai Water
Desalination Ltd's (CWDL) bank loans as follows:

-- INR3,780 mil. Senior project bank loans (Long-term) affirmed
    with IND D rating.

-- INR50 mil. Performance security (executed in the form of a
    bank guarantee) (Long-term) affirmed with IND D rating.

KEY RATING DRIVERS

The affirmation reflects CWDL's continued delays in debt
servicing due to a tight liquidity position. During December
2016-October 2017, receivable period from the Chennai
Metropolitan Water Supply & Sewerage Board (CMWSSB) was 13 days
and average collection efficiency was 96%.

RATING SENSITIVITIES

Positive: Timely debt servicing for three consecutive months
would be positive for the ratings.

COMPANY PROFILE

CWDL is a special purpose vehicle incorporated to design,
construct, operate and maintain a 100MLD seawater desalination
plant at Minjur, about 35km north of Chennai. At end-FY17, IVRCL
Limited ('IND D') owned 90% equity in CWDL, of which 15% was the
beneficial interest of Abengoa Water and its entities. The
remaining 10% was held by Abengoa Water and its entities.


DARIL IMPEX: CRISIL Assigns 'B' Rating to INR5MM Cash Loan
----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4'
ratings to the bank loan facilities of Daril Impex Private
Limited (DIPL).

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Proposed Long Term
   Bank Loan Facility       2.1       CRISIL B/Stable

   Cash Credit              5.0       CRISIL B/Stable

   Import Letter of
   Credit Limit             0.9       CRISIL A4

The ratings reflect the company's below average financial risk
profile and modest scale of operations. These weaknesses are
partially offset by the extensive experience of its promoters in
the trading business.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: With revenue of INR27 crore in
fiscal 2017, scale remains modest in the competitive chemical
trading business. Turnover is expected to grow at a moderate pace
over the medium term.

* Below average financial risk profile: The financial risk
profile is weak marked with high gearing of 3.45 times as on
March 31, 2017 and below average debt protection metrics due to
low net worth over the past three years ended March 31, 2017.

Strengths

* Extensive experience of partners: The promoters have over 2
decades of experience in the trading business. This experience
has helped the company to establish relationship with its
suppliers which enables it to source its products smoothly. DIPL
has also established relationships with various customers as
well.

Outlook: Stable

CRISIL expects DIPL to maintain a stable business risk profile
over the medium term on account of the extensive experience of
the promoters. The outlook maybe revised to 'Positive' in case of
more than expected revenues resulting in improvement of its scale
of operations or improves its working capital management and also
improves its capital structure leading to overall improvement in
its financial risk profile. Conversely, the outlook maybe revised
to 'Negative' if DIPL undertakes any large debt funded capex
plans, or if there is a stretch in working capital management or
lower than expected cash accruals.

DIPL is a private limited company engaged into trading of
chemicals. The company is engaged majorly into chemical solvents.
The company is presently managed by Mr. Pankaj Sheth and Mr.
Rajendra Sheth.


DHEEPTI SPICES: Ind-Ra Affirms B LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Dheepti Spices'
(DS) Long-Term Issuer Rating at 'IND B'. The Outlook is Stable.
The instrument-wise rating action is:

-- INR54.0 mil. Fund-based working capital limits affirmed with
    IND B/Stable/IND A4 rating.

KEY RATING DRIVERS

The affirmation reflects continued small scale of operations and
weak credit metrics because of its low-margin business of
processing pulses and spices. Revenue increased to INR259 million
in FY17 (FY16: INR247 million) because of a rise in orders. DS
recorded INR240 million in revenue, according to interim
financials for 9MFY17. As of December 2017, DS had an order book
of INR132.5 million, which will be executed before March 2018,
providing moderate revenue visibility for the near term.

Moreover, net leverage (adjusted net debt/operating EBITDA) was
12.5x in FY17 (FY16: 8.1x). The deterioration in net leverage was
because of a decrease in EBITDA margin to 2.1% in FY17 (FY17:
3.0%), primarily due to the commoditised nature of the raw
material. EBITDA interest coverage (operating EBITDA/gross
interest expense) improved to 1.3x in FY17 from 1.2x in FY16,
driven by a decrease in interest expense.

The ratings reflect the firm's tight liquidity position owing to
high working capital requirements. Its average fund-based
facility utilisation was 91% for the 12 months ended December
2017.

The ratings, however, continue to be supported by the
proprietor's 15 years of experience in the spice processing
industry.

RATING SENSITIVITIES

Negative: Any decline in the profitability resulting in
deterioration in the credit metrics on a sustained basis could
lead to a negative rating action.

Positive: Any substantial growth in the top line, along with an
improvement in the profitability, leading to an improvement in
the credit metrics could lead to a positive rating action.

COMPANY PROFILE

Formed in 2006 by Mr Amarnath Jeyaraj, DS is a proprietorship
firm primarily engaged in the processing of kaspa peas at its 20-
tonne-per-day facility in Tuticorin (Tamil Nadu). The site
registered an 80% capacity utilisation for FY17. In August 2017,
the firm entered the jewellery business.


ECO POLYMERS: CARE Moves B Rating to Not Cooperating Category
-------------------------------------------------------------
CARE Ratings has been seeking information from Eco Polymers to
monitor the rating(s) vide e-mail communications/letters dated
December 29, 2017 and numerous phone calls. However, despite our
repeated requests, the firm has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express opinion on the rating. In line with the extant SEBI
guidelines CARE's rating on Eco Polymers' bank facilities will
now be denoted as CARE B; ISSUER NOT COOPERATING.

                       Amount
  Facilities        (INR crore)    Ratings
  ----------        -----------    -------
  Long term Bank
  Facilities             6.70      CARE B; Issuer not cooperating

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

Detailed description of the key rating drivers
At the time of last rating on September 27, 2016 the following
were the rating strengths and weaknesses

Key Rating Strengths

Experienced promoters: ECP is managed by Mr Ashok Goyal, Mr Vinod
Goyal, Mr Ayush Goyal and Mr Aman Goyal. Mr Ashok Goyal and Mr
Vinod Goyal have total work experience of around two decades and
one and a half decades in the textile industry respectively. They
have gained this experience through their association with group
concerns namely Shree Bhawani Woolen Mills and Shri Bhawani
Udyog. Both the entities are engaged in manufacturing of woolen
yarn since 1995 and 2000 respectively.

Favourable Industry Scenario: The Indian woven sack industry has
been one of the fastest growing segments of the bulk packaging
industry and has registered an annual compounded growth rate of
15% or more over the last decade despite being hampered by the
Jute Packaging Materials Act (JPMA) by which the Government of
India mandates the use of only Hessian (Jute) bags for many high-
volume applications like packaging of food-grains and sugar.
Today, the use of woven sacks is quite extensive for applications
ranging from chemicals, fertilizers and cement to a wide variety
of products in the 20-50 kg range. Plastic woven sacks are
technically the preferred system as compared to Hessian bags
because they provide much better protection to the products.

Key Rating Weaknesses

Implementation risk associated with green filed project:
Execution risk is associated with greenfield project which
involves setting up a manufacturing unit for Propylene Fabrics
and woven sacks. The operations of the firm are expected to
commence from April, 2017. As on August 30, 2016, the firm has
incurred an expenditure of INR0.41 crore in the aforesaid project
implementation as against the total project cost of INR7.84
crore. The total project cost is to be funded through bank term
loan of INR4.50 crore and promoters' contribution of INR3.34
crore). The expenditure of INR0.41 crore incurred till date has
been funded through the promoters' contribution only. Also, the
project is at nascent stage and is exposed to project execution
risk.

Raw material price volatility risk: The primary raw material
required by ECP is PP granules, the price of which is dependent
on crude oil prices which are highly volatile. Further, the
limited suppliers of these raw materials make it a seller's
market with limited bargaining power for buyers. Any sudden spurt
in these raw material prices might not be passed on to the end
customers, instantly, on account of highly fragmented and
competitive nature of the industry, which could lead to decline
in profitability margins.

Competitive and fragmented industry with low entry barriers: Poly
woven sacks & fabric industry is highly fragmented with the
presence of a large number of unorganized regional manufacturers
and rising imports. Furthermore, favourable government policies
like interest rate subsidy under Technology Upgradation Fund
Scheme (TUFS), concession in custom duty, etc. have led to the
entry of many new players in this industry, intensifying the
competition. The intense competition is also driven by low entry
barriers in terms of capital and technology requirements and
limited product differentiation.

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

Eco Polymers (ECP) was established in May, 2016 as a partnership
firm and is currently being managed by Mr Ashok Goyal, Mr Vinod
Goyal, Mr Ayush Goyal and Mr Aman Goyal as its partners sharing
profit and loss in the ratio of 11%, 33%, 23% and 33%
respectively. ECP is established with an aim to set up a
manufacturing unit at Panipat, Haryana for manufacturing of
Propylene (PP) fabrics and woven sacks. The firm has proposed
total installed capacity to manufacture 16.5 lakh Kg of PP fabric
per annum at its plant. The firm's proposed products are mainly
used in packaging of agro products, heavy chemicals, poultry
feed, cement and fertilizers.


ELECTRO INTERNATIONAL: CARE Assigns B+ Rating to INR8.25cr Loan
---------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Electro International Company Private Limited (EICPL), as:

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long-term Bank
  Facilities            8.25     CARE B+; Stable Assigned

  Short-term Bank
  Facilities            3.75     CARE A4 Assigned

Detailed Rationale and key rating drivers

The ratings assigned to the bank facilities of EICPL are
constrained by small scale of operations with low profitability,
exposure to geo-political risk with high concentration,
susceptibility to fluctuation in traded products price, working
capital intensive nature of operation, intensely competitive
industry and leveraged capital structure and debt coverage
indicators. The ratings, however, derive strength from its
experienced promoter and long track record of operations.

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

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with low profitability: The scale of
operations of EICPL remained small marked by total operating
income of INR30.27 crore with a PAT of INR0.16 crore in FY17. The
total capital employed also remained low at INR8.44 crore as on
March 31, 2017. The small size restricts the financial
flexibility of the company and hinders it's economies of scale.
The company has achieved revenue of around INR43.91 crore during
8MFY18. The profitability margins of the company remained low
marked by PBILDT margin of 2.67% and PAT margin of 0.53% in FY17
mainly due to its trading nature of business. However, the PBILDT
margin improved in FY17 on account of better operating
efficiency. Further, the PAT margin also improved in FY17 on
account of higher increase in PBILDT level vis-Ö-vis increase in
capital charges.

Susceptibility to fluctuation in traded products price: The
prices of traded goods (i.e. iron & steel and coke) are highly
volatile. The cost of traded goods constitutes major cost driver
for the company which accounts for around 90% of the total cost
of sales. Accordingly, any volatility in the prices of the traded
goods is likely to have an impact on the profitability of the
company.

Working capital intensive nature of operation: The operations of
the company remained working capital intensive in nature marked
by its high collection period. The company allows around two
month credit to its customers whereas it pays upfront to its
suppliers for availing cash discounts. According the average
utilization of working capital limit was on the higher side at
90% during last 12 months ending on November 30, 2017.

Leveraged capital structure and debt coverage indicators: The
capital structure of EICPL remained leveraged marked by overall
gearing ratio of 3.64x as on March 31, 2017. The debt protection
metrics of the company also remained moderate marked by interest
coverage of 1.53x (1.45x in FY16) and total debt to GCA of 32.43x
(39.03x in FY16) in FY17. The interest coverage improved in FY17
due to higher increase in PBILDT level vis-a-vis interest
expenses. Furthermore, total debt to GCA also improved, though
high, due to high gross cash accruals level as on March 31, 2017.

Exposure to geo-political and geographical concentration risk:
EICPL earns revenue of around 80% from exports markets. The major
export destinations for the company are Pakistan, Sri Lanka and
Spain. Out of total exports, around 90% revenue comes from
Pakistan only. Thus, the company is exposed to geographical
concentration risk. It is to be noted, for any kind of
geopolitical crises, dependency of a single region in the world
may hamper the revenue stream of the company.

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

Key Rating Strengths

Experienced promoters with long track record of operations: EICPL
started its operations from 1996. Thus, it has long operational
track record. Furthermore, the promoters Mr. Prashant Musaddi,
having around two decades of experience in this line of business,
looks after the day to day operations of the company. He is
supported by other promoters Mr. Piyush Musaddi and Mr. Vikash
Agarwal along with a team of experienced professional.

EICPL was established as a partnership firm, 'Electro
International Company' in 1996 to initiate a trading and export
business. However, it was converted into private limited company
in April 2012 and the name changed to current name (EICPL). The
company primarily is into export business (80% during FY17) of
products like ferro alloys, coal, insulating fittings of ceramics
etc. to the countries like Pakistan, Sri Lanka and Spain.


FLOWTECH INDUSTRIES: CRISIL Lowers Rating on INR10MM Loan to B
--------------------------------------------------------------
CRISIL Ratings has downgraded its long term rating on the bank
facilities of Flowtech Industries LLP (Flowtech) to 'CRISIL
B/Stable' from 'CRISIL B+/Stable' while reaffirming the short
term rating at 'CRISIL A4'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Bank Guarantee        19        CRISIL A4 (Reaffirmed)

   Cash Credit           10        CRISIL B/Stable (Downgraded
                                   from 'CRISIL B+/Stable')

   Proposed Long Term     8        CRISIL B/Stable (Downgraded
   Bank Loan Facility              from 'CRISIL B+/Stable')

The downgrade reflects deterioration in the business risk
profile, mainly caused by a sudden stretch on the working capital
cycle and declining revenue. Delay in realization of receivables
have lengthened the working capital cycle. Additionally, the
company has no new order book in hand and the order on which it
is working currently is nearing completion with 93% work
completed by December, 2018. There is a sharp decline in
operating income and margin, to INR23.77 cr and 2.8%,
respectively, in fiscal 2017, from INR52.07 cr and 6.3%,
respectively, in the previous fiscal. Consequently, the company's
financial risk profile has weakened, marked by weak debt
protection metrics with interest coverage at 0.51 time and Net
Cash Accruals to Total Debt (NCATD) at 1% as in fiscal 17.
Liquidity has also weakened, with the continuous fall in cash
accrual to INR11 lacs in fiscal 2017 from INR1.23 cr in fiscal
2014 leading to full utilization of bank limit over the 6 months
through October 2017.

The ratings continue to reflect on the firm's modest scale of
operations and its working capital-intensive operations. These
weaknesses are partially offset by the extensive experience of
its promoters.

Key Rating Drivers & Detailed Description

Weakness:

* Modest scale of operations: Scale of operations has been
modest, reflected in revenue of around INR23.77 cr in 2016-17.
For the five years through 2016-17, the firm was executing only a
single contract for KOC, leading to small scale of operations. It
has no confirmed work order which constrains its revenue
visibility. Hence, scale is expected to remain modest over the
medium term.

* Large working capital requirement: Operations are working
capital intensive, reflected in high debtors of around 528 days
as on March 31, 2017 resulting from the retention money and
pending work to be certified by customers. This is funded by
creditors of 405 days which are mainly backed by letter of
credits. Operations are likely to remain working capital
intensive over the medium term.

Strengths:

* Experienced and technically sound partners: Flowtech earlier
traded in pipes which it was selling to various customers engaged
in the oil and gas industry. Also, the partners are qualified and
have sound industry knowledge. Mr. Valiulla, a qualified
engineering and management graduate, has been the alumni of
Indian Institute of Science (Bangalore) and Birla Institute of
Technology and Science, Pilani (Rajasthan). Mr. Menon is also a
qualified engineer. Their experience helped undertake the current
contract successfully. Business risk profile will benefit over
the medium term from the partners' experience.

Outlook: Stable

CRISIL believes Flowtech will benefit over the medium term from
the experience of its promoters. The outlook may be revised to
'Positive' in case of a substantial improvement in scale of
operations and efficient working capital management, while
maintaining profitability and capital structure. The outlook may
be revised to negative if low cash accrual or large working
capital requirement in the absence of funding from promoters puts
pressure on financial risk profile, particularly liquidity.

Flowtech is a limited liability partnership firm of Mr. Javid
Valiulla and Mr. Shivshankar N Menon, Flowtech is an engineering,
procurement, and construction contractor, and has currently
undertaken a project for Kuwait Oil Corporation (through joint
bidding with Combined Group Contracting Co LLC, Kuwait). The firm
procures, supplies, and installs structural parts, chemical
transfer pumps, generators, air compressor packages, and fire
safety systems. It was earlier in the trading business, which was
discontinued in 2010.


FRYSTAL PET: CARE Lowers Rating on INR12cr LT Loan to B+
--------------------------------------------------------
CARE Ratings has been seeking information from Frystal Pet
Private Limited to monitor the ratings vide emails dated
September 26, 2017 and September 21, 2017 and numerous phone
calls. E-mail communications seeking information are attached as
Annexure C. However, despite our repeated requests, the company
has not provided the requisite information for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. CARE's rating on Frystal Pet Private
Limited's will now be denoted as CARE B+; ISSUER NOT COOPERATING.

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long-term Bank       12.00     CARE B+; Issuer Not Cooperating;
  Facilities                     Revised from CARE BB- on the
                                 basis of best available
                                 information

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

The ratings have been revised by taken into account subdued
performance during FY17 (refers to the period April 1 to
March 31) including lengthening of operating cycle and
deterioration in capital structure. The ratings further continue
to constained by small scale of operations, highly competitive
industry and susceptibility to profit margins on account of
volatility in raw material prices. The ratings, however, continue
to draws comfort from the experienced promoters, growing scale of
operations, moderate profitability and coverage margins and
concentrated though reputed customer base.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations: The scale of operations has remained
which limit the company's financial flexibility in times of
stress and deprive it of scale benefits.

Leveraged capital structure: The capital structure of the company
continues to remain leveraged for the past three years (FY15-
FY17). Overall gearing ratio deteriorated and stood leveraged on
account of higher total debt as compared to its networth.

Lengthning of operating cycle: The operating cycle of the company
stood elongated for FY17 mainly on account of high inventory
holding as the company maintains an adequate amount of major
inventory is in the form of raw material for smooth running of
its production processes and finished goods to meet the immediate
demand of the customers. Further being in a highly competitive
industry the company offers credit period of around two and a
half month and urther, the company usually pays its suppliers
within a month.

Raw material price volatility: PET resin, is the main raw
material used for the production of PET Preform which the company
will procure internally. Since it is a petrochemical derivative,
FPPL is exposed to the risk of volatility in the prices of crude
oil/natural gas.

Highly competitive industry: FPPL operates in a highly
competitive market for PET bottles marked by the presence of a
large number of players in the unorganized sector, which accounts
for more than 70% of the total domestic turnover. The industry is
characterized by low entry barriers due to low technological
inputs and easy availability of standardized machinery for the
production and
bottle manufacturing industry in India is highly competitive.

Key Rating Strengths

Experienced promoters: FPPL is currently managed by Mr. Rakesh
Kumar, Mr. Nishit Singhal and Mr. Mayur Singhal. They look after
the overall operations of the company.

Mr. Rakesh Kumar is graduate by qualification having an
experience of four decades in various industries such as bricks
manufacturing in his individual capacity and through his
association with this entity. Mr. Nishit Singhal is a post
graduate by qualification having more than half a decade of
experience in same industry in his individual capacity and
through his association with this entity. Prior to this, he had 2
years of experience as a software engineer in Infosys.

Mr. Mayur Singhal is a graduate and has 3 years of experience
through his association with this entity.

Growing scale of operations: The company has witnessed growth in
revenues over the last three financial years (FY15-FY17) which is
attributable to higher quantity sold to existing and new
customers.

Moderate profitability margins and coverage indicators: The
profitability margins of the company continues to remain moderate
for the past three financial years i.e. FY15-FY17. Debt service
coverage indicators marked by interest coverage and total debt
have stood moderate for the past three years (FY15-FY17) owing to
moderate PBILDT level and moderate GCA level.

Concentrated though reputed customer base: The company had
established good relationship with numerous reputed clients
.These customers are spread across different segments of the
distilleries industry which aids the company in compensating for
the slowdown in any one or more specific segment. In light of the
satisfactory work, it has managed to get repeated orders from its
clients as well as reputed client base assures timely payment and
lends comfort to the revenue realization. The company's sales are
concentrated and in the event of change in procurement policy of
these players the business of the client will be adversely
impacted.

New Delhi based, Frystal Pet Private Limited was incorporated in
2010 and managed by Mr. Rakesh Kumar, Mr. Nishit Singhal and Mr.
Mayur Singhal. The company is engaged in manufacturing of pet
preform used to make the plastic bottles. It caters to the
packaging needs of distillery, beverages and other similar
sectors. The main raw material for manufacturing Pet Preform is
pet resin which company procure from reputed supplier's base
viz., Reliance Industries Limited, JBF Industries Ltd. and
Dhunseri Petrochem Ltd. mainly located in U.P, Delhi, Haryana and
Rajasthan. FPPL is having a reputed customer viz., Bisleri
(Franchise in India), VHV Beverages Pvt. Ltd. and Sharma Sales
Corporation etc. located in U.P, Delhi, Haryana and Rajasthan.


GAYA RAILWAY: CARE Moves B+ Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has been seeking information from Gaya Railway Infra
Private Limited (GRIPL) to monitor the rating vide e-mail
communications/letters dated July 10, 2017, August 16, 2017 ,
August 24, 2017 , November 15,2017 and December 12,2017 and
numerous phone calls. However, despite our repeated requests, the
company has not provided the requisite information for monitoring
the rating. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on Gaya Railway Infra Private
Limited's bank facilities will now be denoted as CARE B+; Issuer
Not Cooperating.

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long term Bank        9.00     CARE B+; Issuer Not Cooperating;
  Facilities                     Based on best available
                                 information

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

The rating takes into account the small scale of operations,
leveraged capital structure, execution and implementation risk of
the project along with presence in the highly competitive and
fragmented retail industry. The above weaknesses are partially
offset by the satisfactory experience of promoters in civil
construction industry and strategic location of the project.

Detailed description of the key rating drivers

At the time of last rating on December 01, 2016 following were
the rating strengths and weaknesses: (Updated for the information
available from Registrar of Companies).

Key Rating Weaknesses

Small scale of operations: The company registered a turnover of
INR 0.29 lakh through interest income. The commercial operations
were expected to commence in January 2017; however the same got
delayed.

Leveraged capital structure: The capital structure remained
leveraged led by high dependence on external borrowings.
Project execution and implementation risk: GRIPL is in the
process of construction and development of multi-functional
complex over the area of 72300 sq. ft. land at Gaya, Bihar. The
proposed project was expected to complete by January 2017.
Moreover, as per concession agreement signed with Rail Land
Development Authority (RLDA), the company cannot have any tie-ups
or bookings with customers before the project is executed
completely.

Presence in a competitive environment: The retail industry in
India has shown a robust growth especially in the organized
retail segment, yet the industry is characterized by dominance of
unorganized segment. This leads to intense competition among
small players.

Key Rating Strengths

Experienced Promoters: GRIPL is a wholly owned subsidiary of SGR
Ventures Private Limited, which is further promoted and managed
by Mr. Sunil Raisoni, Mr. Pravin Pohankar and Mr. Nitesh
Sankecha. The promoters have an average experience of more than
one and half decade in the diversified industries and however
they all are involved in managing the day-to-day affairs of the
business. Being in the industry for long has helped the promoters
in gaining adequate acumen about the industry.

Strategic location of the project: GRIPL is currently developing
a multifunctional complex at Gaya, Bihar, which is located near
to Gaya Railway Station (at a distance of 50 meters). The project
site is located at a distance of 100 kilometers from the capital
of Bihar, i.e. Patna thereby providing an easy access to
connectivity from railway, main bus stand and Gaya International
Airport creating a demand for the commercial complex.

Incorporated in November 19, 2014, GRIPL is a special purpose
vehicle (SPV) formed by SGR Ventures Private Limited (SGRVPL) for
construction and development of multi-functional complex at Gaya,
Bihar awarded by Rail Land Development Authority (RLDA) to be
operated on a built-operate-transfer (B-O-T).


GOYAL AGENCIES: CRISIL Hikes Rating on INR29MM Cash Loan to B+
--------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank loan
facilities of Goyal Agencies Private Limited (GAL) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable', and reaffirmed its 'CRISIL A4'
rating on the short-term facility.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           29        CRISIL B+/Stable (Upgraded
                                   from 'CRISIL B/Stable')

   Letter of Credit       3.5      CRISIL A4 (Reaffirmed)

The upgrade reflects improvement in the company's business risk
profile, indicated by 40.3% increase in operating revenue to
INR68.40 crore in fiscal 2017 from INR48.41 crore in fiscal 2016,
driven by an increase in demand from existing customers and
addition of customers. The extensive experience of the promoters
and established customer base should lead to further improvement
in the business risk profile over the medium term. Liquidity
should remain adequate over the medium term driven by moderate
bank limit utilisation (72% over the 12 months through
November 2017) and sufficient cash accrual to meet debt
obligation.

The ratings continue to reflect the company's modest scale of
operations, large working capital requirement, and below-average
financial risk profile because of small networth, high total
outside liabilities to adjusted networth (TOLANW) ratio, and
average debt protection metrics. These weaknesses are partially
offset by the extensive experience of the promoters in the
industrial equipment trading business, and established
relationship with principal supplier.

Key Rating Drivers & Detailed Description

Weaknesses

* Working capital-intensive operations: Gross current assets were
at 274 days as on March 31, 2017. Inventory is sizeable and is
expected at 194 days. The company extends credit of 90 days to
customers, and gets limited credit of 30 days from suppliers,
resulting in large working capital requirement.

* Weak financial risk profile: The TOLANW ratio was high at 5.20
times and networth was small at INR8.07 crore as on March 31,
2017. Debt protection metrics were average, with interest
coverage ratio at 1.40 times and net cash accrual to adjusted
debt ratio of 0.05 time for fiscal 2017. The ratios are expected
to remain stable over the medium term.

* Modest scale of operations: Although operating revenue rose
40.3% in fiscal 2017 over the previous fiscal, it will remain
modest due to intense competition.

Strengths

* Extensive experience of promoters: Presence of around five
decades in the industrial machinery trading business has enabled
the promoters to successfully set up sales offices in Punjab,
Delhi, Maharashtra, West Bengal, and Haryana.

* Moderately diversified product portfolio: GAL distributes
Panasonic Welding Systems (PWS) products such as welding,
cutting, and grinding equipment. It also trades calcium carbide
and hand tool machines, welding electrode and abrasives. However,
cyclicality in the automotive industry, the end user of the
products, affects the company's revenue.

Outlook: Stable

CRISIL believes GAL will continue to benefit from the extensive
experience of its promoters and its established relationship with
its principal supplier. The outlook may be revised to 'Positive'
if there is a sustained improvement in working capital cycle or
capital structure backed by sizeable equity infusion by the
promoters. The outlook may be revised to 'Negative' if
profitability declines steeply, or if capital structure weakens
considerably due to stretch in working capital cycle.

Set up in 1958 in Jalandhar, Punjab, as a partnership firm by Mr
Rajinder Prashad and his family members, and reconstituted as a
public limited company in 1985, GAL trades in industrial
machinery such as welding, cutting, and grinding equipment.


H. M. PATEL: CARE Assigns B+ Rating to INR1.50cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of H. M.
Patel and Company (HMPC), as:

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long Term Bank
  Facilities            1.50     CARE B+; Stable Assigned

  Short Term Bank
  Facilities            4.50     CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of HMPC are
constrained on account of its fluctuating and small scale of
operations along with overall financial risk profile marked by
thin profit margins, moderately leveraged capital structure, weak
debt coverage indicators and moderate liquidity position during
FY17 (refers to the period April 1 to March 31). The ratings are
also constrained due to proprietorship nature of its
constitution, its presence in a highly competitive and fragmented
nature of industry and susceptibility of profit margins to
volatility in prices of raw material prices and foreign exchange
fluctuation risk. The ratings, however, derive strength from
experienced proprietor with established track record of firm.

HMPC's ability to increase its scale of operations and improve
its profitability in light of competitive business environment
and volatile raw material prices remains the key rating
sensitivities. Further, SVPS's ability to improve its solvency
position and debt protection metrics via efficient working
capital management would also remain crucial.

Detailed description of the key rating drivers

Key Rating Weaknesses

Fluctuating and small scale of operations and thin profit
margins: The total operating income of the firm has been
fluctuating since the past three years and stood small at
INR11.05 crore during FY17 as against INR7.57 crore in FY16. The
PBILDT margin stood low at 3.53% while the PAT margin stood thin
at 0.83% in FY17.

Financially risk profile marked by moderately leveraged capital
structure, weak debt coverage indicators and moderate liquidity
position: The capital structure stood moderately leveraged marked
by overall gearing of 2.07 times as on March 31, 2017. The debt
coverage indicators remained weak marked by total debt to gross
cash accrual of 38.10 years as on March 31, 2017, while the
interest coverage ratio stood moderate at 1.36 times during FY17.
The liquidity position remained moderate marked by current ratio
of 1.29 times as on March 31, 2017, while the working capital
cycle stood elongated at 95 days in FY17. The average utilization
of working capital limits has remained at 80% for the past twelve
months period ended November, 2017.

Proprietorship nature of constitution: There is inherent risk of
possibility of withdrawal of capital and dissolution of the firm
in case of death/retirement/insolvency/personal contingency of
the proprietor.

Susceptibility of profit margins to volatility in prices of raw
material prices and foreign exchange fluctuation risk: HMPC
imports its entire raw materials from various countries; hence
the firm is exposed to foreign exchange fluctuation risks.
Moreover the firm is exposed to fluctuations in prices of raw
material; i.e. timber, owing to difference in the price
fluctuation occurring between placing orders to suppliers on the
basis of anticipated demand and the sawing of logs against
customer specific orders.

Presence in a highly competitive and fragmented nature of
industry: Timber trading segment is highly unorganized and
witnesses intense competition due to low entry barriers. Hence
the profit margins of the firms like HMPC remain under pressure.

Key Rating Strengths

Experienced proprietor with long established track record of the
firm: The firm was established in 1998 and Mr. Kantilal Patel
manages overall operations of the firm. He is into this business
for more than a decade and has an established network of
suppliers and customers.

Rajkot-based (Gujarat), HMPC; a proprietorship firm is a family
owned-business established in 1998, by Mr. Hansraj Patel.
Currently, the firm's business has been taken over by his son Mr.
Kantilal Patel who manages day to day operation of firm. HMPC is
engaged in the business of sawing and sizing of timber. It
carries out its manufacturing from its facility located in
Gandhidham (Gujarat), which is equipped with three ben saw
machine having an installed capacity of 1100 cubic feet as on
March 31, 2017.


IRCON-SOMA TOLLWAY: Ind-Ra Withdraws INR3,813MM Bank Loan Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Ircon-Soma
Tollway Private Limited's bank loan rating as follows:

-- INR3,813* mil. Senior project bank loans withdrawn with WD
    rating.

* outstanding INR1,268 million on April 30, 2017

KEY RATING DRIVERS

Ind-Ra is no longer required to maintain the loan rating as the
agency has received a no dues certificate from the lender.

COMPANY PROFILE

Ircon-Soma Tollway is a special-purpose vehicle, created by a
joint venture between Ircon International Ltd and Soma
Enterprises Ltd. The SPV has been granted a 20-year build-
operate-transfer concession by National Highways Authority of
India ('IND AAA'/Stable) to widen, construct, operate and
maintain a 118km road stretch on National Highway 3 between
Pimpalgaon and Dhule in Maharashtra.


IVRCL INDORE: Ind-Ra Affirms D Rating on INR70MM Bank Guarantee
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed IVRCL Indore
Gujarat Tollways Limited's (IIGTL) bank facilities as follows:

-- INR11,785.65 mil. (reduced from INR13,726.8 mil.) Senior
    project bank loan (Long term)

-- INR70 mil. Bank guarantee (Long term) affirmed with IND D
    rating.

KEY RATING DRIVERS

The affirmation reflects continued delays in servicing debt
obligations by IIGTL for more than 90 days due to a stressed
liquidity position, as stated in IIGTL's FY17 annual report.

The project has failed to achieve the target provisional
commercial operation date (PCOD) of 2 February 2017, owing to
delays from National Highways Authority of India (NHAI; 'IND
AAA'/Stable) in handing over land for a 16.09km stretch falling
under a bird sanctuary and a forest. Also, all works on the
project stretch were suspended over February 2016-February 2017
because of various operational issues. Work recommenced from
March 2017.

IIGTL had entered into a tripartite agreement with NHAI and the
lender to extend the PCOD to 31 December 2017 after delinking the
16.09km stretch. The PCOD is likely to be to further extended to
31 March 2018, according to the management. Until December 2017,
NHAI had infused INR700 million of the proposed INR1,224.9
million one-time fund infusion to achieve the target PCOD.

According to the August 2017 monthly progress report, the project
had achieved a physical progress of 97.2% and a financial
progress of 95.04% (excluding the 16.09km stretch).

RATING SENSITIVITIES

Positive: Timely debt servicing for three consecutive months
would be positive for the ratings.

COMPANY PROFILE

IIGTL is a special-purpose company incorporated to undertake a
155.15km expansion of a stretch between Indore and Gujarat to
four lanes from two and a capacity augmentation project on a
design, build, finance, operate and transfer basis, both under a
25-year concession from NHAI.

As informed by the management, the project company underwent a
strategic debt restructuring in February 2017. Henceforth, the
project is exempted from paying principal and interest for 18
months ending July 2018.


JINDAL TIMBER: CARE Moves B+ Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has been seeking information from Jindal Timber &
Plywood Private Limited to monitor the rating(s) vide e-mail
communications/ letters dated December 29, 2017, December 28,
2017, etc. and numerous phone calls. However, despite our
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The rating on
Jindal Timber & Plywood Private Limited's bank facilities will
now be denoted as CARE B+/CARE A4; Issuer not cooperating.

                     Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long-term Bank         4       CARE B+; Issuer not cooperating;
  Facilities                     Based on best available
                                 information

  Short-term Bank       14       CARE A4; Issuer not cooperating;
  Facilities                     Based on best available
                                 information

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

The ratings take into account the constraints relating to
company's small scale of operations coupled low net worth base,
low profitability margins, leveraged capital structure, weak
coverage indicators. The ratings are further constrained by
susceptibility of margins to fluctuation in raw material prices
and government regulations, foreign exchange fluctuation risk
with JTP's presence in a highly fragmented and competitive
industry. The ratings, however, draws comfort from experienced
promoters, moderate operating cycle and location advantage.

Detailed description of the key rating drivers

At the time of last rating on January 25, 2017, the following
were the rating strengths and weaknesses (Updated for the
information available from the Registrar of companies).

Key Rating Weaknesses

Small scale of operation coupled with low net worth base: Despite
being operational for nearly one and half decade, the scale of
operations has remained small as marked by a total operating
income and gross cash accruals of INR32.82 crore and INR0.16
crore respectively during FY17 (refers to the period April 1 to
March 31). Furthermore, the company's net worth base was
relatively small at INR3.66 crore as on March 31, 2017. The small
scale limits the company's financial flexibility in times of
stress and deprives it from economies of scale.

Weak financial risk profile: The profitability margins of the
company continue to remain on lower side owing to the trading
nature of business wherein the value addition is inherently low
and highly competitive nature of industry. Further, high interest
cost restricts the net profitability of the company. PBILDT and
PAT margins of the company stood at 3.32% and 0.19% respectively
for FY17. The capital structure of the company continue to remain
leveraged on account of high dependence on external borrowings to
meet the working capital requirements coupled with relatively low
net worth base. As on March 31, 2017, the overall gearing ratio
of the company stood at 5.04x (including acceptances of letter of
credit) and the same continued to remain leveraged. The high
working capital requirements were met largely through bank
borrowings which resulted in almost full utilization of its
sanctioned working capital limits for 12 months period ended
December, 2017. Debt coverage indicators continue to remain weak
on account of low profitability. Interest coverage and total debt
to GCA stood at 1.25x and around 112 times respectively for FY17.

Susceptibility of margins to fluctuation in raw material prices
and high government regulations: JTP sources majority of the
timber requirement, approximately 90% from Malaysia, Germany and
New Zealand. This exposes the company to adverse changes in the
government policies in these countries with respect to timber
export. Earning are also susceptible to the regulatory policies
relating to the tariff barriers (import duty, custom duty), non-
tariff barriers (restriction on quantity of imports) anti-dumping
duties, international freight rates and port charges.
Furthermore, JTP is also exposed to volatility in the log prices
as it does not enters into any contract for purchase of raw
materials.

Foreign currency fluctuation risk: The company is mainly
importing material from Malaysia, Germany, New Zealand etc.
countries and its import procurement to raw material cost stood
at 100% for last three financial years (FY15-FY17). The material
is completely sold in the domestic market. With initial cash
outlay for procurement in foreign currency and significant chunk
of sales realization in domestic currency, the company is exposed
to the fluctuation in exchange rates which the company does not
hedge. The risk is more evident now that the rupee has registered
considerable volatility and could leave the company carrying
costly inventory in case of sudden appreciation.

Presence in a highly fragmented industry with low entry barriers
and high competition: The timber industry is marked by the
presence of unorganized players who primarily cater to the
regional demand to reduce incidence of high transportation costs
as price is the main differentiating factor in the timber
industry. The major income of JTP comes from trading of timber
where the company processes timber logs and markets them to
various retailers with limited value addition to the product.
Timber trading business is characterized by high volumes and low
margins. The timber trading sector is highly competitive,
comprising a large number of players in the organized segment as
a result of low entry barriers. This results in intense
competition which has a cascading effect on the player's margins.

Key Rating Strengths

Experienced promoters: Mr. Ramesh Jain director of JTP has an
experience of more than 3 decades in trading business through his
association with JTP and JCJW. Prior to this, he was associated
in various capacities in different companies engaged in the
similar nature of business. Further, he is supported by his son
Mr. Dinesh Jain who is having experience of around one and half
decade. They both look after the overall operations of the
company.

Moderate operating cycle: The operating cycle of the company
continued to remain moderate during the last 2 financial years
(FY16-FY17) primarily on account of high creditors' days. The
company had high payable period due to high proportion of LC-
backed creditors since the company purchases mostly through
imports backed by LC (up to 180 days). The company is required to
maintain adequate inventory of around two months on account of
high lead time for procurement and company has to meet the
immediate demands of its customers. Further, being a highly
competitive business, the company has to give extended credit
which resulted into high collection period and the average
collection period remained around three months during FY17.

Location advantage: The branch office of JTP is located in the
timber cluster where the wood is processed in various shapes and
sizes at Gandhidham, Gujarat which is very close to the port of
Kandla. Kandla is a hub for wood based industries, having around
1500 wood based industries, and accounting for 55% of India's
timber imports.

Karnal-based (Haryana) JTP was incorporated in 2009 and is
promoted by Mr. Ramesh Jain and supported by his son Mr. Dinesh
Jain. The business operations were originally being carried under
a proprietorship firm "Jindal Cement Jali Works" (JCJW) which was
established by Mr. Ramesh Jain in 1976. Subsequently in 2009, the
business operations were taken over by JTP. JTP is engaged in
trading and sawing of timber and allied products such as plywood,
door skins etc. These products are used for making doors,
windows, furniture and other wooden items. JTP has its registered
office located at Karnal, Haryana with its branch office at
Gandhidham, Gujarat. The company imports timber mainly from
Malaysia, Germany, New Zealand etc. The company sells its
products to wholesalers and retailers pan India. The company has
one associate concern namely Jindal (Ply) India Private Limited
which is engaged in manufacturing of plywood since 2009.


KAUSHAL FERRO: CRISIL Reaffirms D Rating on INR21.2MM LT Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL D/CRISIL D' ratings on
the bank facilities of Kaushal Ferro Metal Pvt Ltd (KFMPL).

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit            11       CRISIL D (Reaffirmed)

   Letter of credit
   & Bank Guarantee        2       CRISIL D (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     21.2     CRISIL D (Reaffirmed)

   Term Loan                .8     CRISIL D (Reaffirmed)

The ratings continue to reflect instances of delay by KFMPL in
servicing debt and large working capital requirement. These
weaknesses are partially offset by the experience of the
promoters in the steel industry.

Key Rating Drivers & Detailed Description

Weakness

* Delays in repayment of term debt obligation: KFMPL has been
delaying the repayment of the term loan taken from the UCO bank
for the construction of its manufacturing facilities. Liquidity
remains stretched due to large working capital requirement and
negative cash accrual resulting from losses incurred in the past.

* Large working capital requirement: Gross current assets have
been sizeable at 120-250 days over the four years through fiscal
2017, driven by inventory of 80-180 days.

Strength

* Experience of promoters: The promoters have over a decade of
experience in the steel industry. The manufacturing facility is
at Odisha, where there are many induction furnaces that use
sponge iron as raw material. Bhushan Steel and Power Ltd is one
of the main customers; the company also has coal linkages with
Mahanadi Coal Fields Ltd since June 2009 for around 3,000 tonne
per month, catering to around half of KFMPL's requirement.
Benefits derived from the promoters' experience and the proximity
to markets and raw material sources should continue to support
the business.

KFMPL, established in 2004, started commercial production in
2007; it manufactures sponge iron. The manufacturing facilities
at Sundargarh (Odisha) has an installed capacity of 60,000 tonne
per annum. Mr Sitaram Agarwal, Mr Ganesh Agarwal, and Mr
Rambihari Upadhayay are the promoters.


KISH EXPORTS: CARE Assigns B+ Rating to INR11cr LT Bank Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Kish
Exports Limited (KEL), as:

                      Amount
  Facilities       (INR crore)    Ratings
  ----------       -----------    -------
  Long-term Bank
  Facilities           11.00      CARE B+; Stable Assigned

Detailed Rationale and key rating drivers

The ratings assigned to the bank facilities of KEL are primarily
constrained by small and declining scale of operations, weak debt
service coverage indicators and working capital intensive nature
of operations. Further, the ratings are also susceptible to
foreign exchange fluctuation risk, intense competition in the
industry due to low entry barriers and fortunes linked to the
textile industry.

The ratings, however, draw comfort from experienced promoters
with long track record of operations, moderate profitability
margins and capital structure.

Going forward; ability of SOPL to increase its scale of
operations while maintaining its capital structure along with
efficient management of its working capital requirements shall be
the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small and declining scale of operations: Despite being
operational for nearly two decades, the scale of operations has
remained small marked by a total operating income and gross cash
accruals of INR 24.94 crore and INR 0.63 crore respectively
during FY17. The small scale limits the company's financial
flexibility in times of stress and deprives it from scale
benefits. Furthermore, the total operating income of the company
has been declining on y-o-y basis in the last three financial
years (FY15-FY17) owing to decrease number of orders executed.
During 7MFY18 (refers to the period April 1 to November 30; based
on provisional results), the company has achieved the total
operating income of INR16.00 crore.

Working capital intensive nature of operations and Weak coverage
indicators: The operations of the company are working capital
intensive in nature marked by an operating cycle of 259 days for
FY17. The inventory holdings are mainly in the form of raw
materials and work in process. The company manufactures garments
for different genre (women and kids) resulting in high
requirement of raw materials (different type of fabric, color
etc.).

Furthermore, the company is required to maintain adequate
inventory at each processing stage for smooth running of its
production processes like cutting, stitching, checking, washing,
steam pressing and packaging. Entailing these resulted into an
average inventory holding of 216 days for FY17. The company
offers credit period of 3-4 months to its customers resulting
into an average collection period of 135 days. Besides, the
company makes payment in 2-3 months to its suppliers resulting in
an average creditor period of 92 days in FY17. The high working
capital requirements were met largely through bank borrowings
which resulted in almost full utilization of its sanctioned
working capital limits for 12 months period ended November 2017.

The debt service coverage indicators as marked by interest
coverage and total debt to GCA stood weak at 1.13x and 27.73x
during FY17. This is mainly on account of higher total debt and
lower profitability resulting in lower GCA levels.

Foreign exchange fluctuation risk: KEL's operations are dependent
on the export market. However, the raw material is mainly
procured from domestic markets. With initial cash outlay for
procurement in domestic currency and significant chunk of sales
realization in foreign currency, the company is exposed to the
fluctuation in exchange rates. Furthermore, in absence of any
hedging policies
adopted by the company, KEL is exposed to fluctuations in the
value of rupee against foreign currency which may impact its cash
accruals.

Intense competition in the industry due to low entry barriers:
KEL operates in a highly competitive industry marked by the
presence of a large number of players in the organized and
unorganized sector. Further, with presence of various players,
the same limits bargaining power which exerts pressure on its
margins.

Fortunes linked to the textile industry: Indian textile industry
which is the second largest employer after agriculture and
account for 4% of the GDP is inherently cyclical in nature. Any
adverse changes in the global economic outlook as well as demand-
supply scenario in the domestic market directly impacts demand of
the textile industry. Textile industry as a whole remains
vulnerable to various factors such as fluctuations in prices of
cotton, mobilization of adequate workforce and changes in
government policies for overall development of the textile
industry. Any significant changes in such factors will have
direct impact on the business operations of the company.

Key Rating Strengths

Experienced management with long track record of operations: KEL
is directed by Mr. Mohinder Kumar Lakhwani, Mrs. Renu Lakhwani
and Mr. Paresh Nayar. Mr. Mohinder Kumar Lakhwani is a chartered
accountant and has accumulated experience of more than two
decades in textile industry through his association with this
entity and other associate. He is further supported by Mrs. Renu
Lakhwani and Mr. Paresh Nayar having an experience of nearly more
than two decades respectively through their association with this
entity and other associate. KEL has been operating in the textile
industry for nearly more than two decades, which aid in
establishing a healthy relationship with both customers and
suppliers.

Moderate profitability margins and capital structure: The
profitability margins of the company stood moderate though
fluctuating during last 3 financial years (FY15-FY17) since the
profitability are directly associated with designing aspect of
the order. The highly and complex design in nature normally fetch
better margins. PBIDLT and PAT margin declined in FY17 due to
decline in capacity utilization which resulted in increase in
cost due to high proportion of fixed cost which deprived it of
its scale benefits and increase in interest expenses
respectively. PBILDT and PAT margins stood at 6.93% and 0.97%
respectively in FY17. The capital structure of the company stood
moderate for the past three financial year's i.e. FY15-FY17 owing
to high net worth base as against its total debt. The debt equity
ratio and overall gearing ratio stood around 0.15x and 0.35x
respectively for the past three balance sheet dates (FY15-FY17).

Gurgaon based Kish Exports Limited (KEL) was incorporated in
December22, 1993. The company is currently being managed by Mr.
Mohinder Kumar Lakhwani, Mrs. Renu Lakhwani and Mr. Paresh Nayar.
It is an export oriented company engaged in the manufacturing and
export of readymade garments for women and kids. The company
procures the raw material such as fabric, buttons, zippers, etc.
domestically from domestic manufacturers. The company sells the
products to manufacturers located in Africa, Australia, Europe,
Spain, and UK etc.


KUMARAN GIN: CRISIL Raises Rating on INR12.5MM Cash Loan to B+
--------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facility of Kumaran Gin and Pressing Private Limited (KGPPL) to
'CRISIL B+/Stable' from 'CRISIL B/Stable'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           12.5      CRISIL B+/Stable (Upgraded
                                   from 'CRISIL B/Stable')

The upgrade reflects CRISIL's belief that KGPPL will maintain its
improved business risk profile over the medium term due to
established relationships with key customers. Revenue is expected
at INR160 crore in fiscal 2018 and operating profitability at 7%.
Planned equity infusion by the promoter in fiscal 2018 should
help improve financial risk profile. Liquidity is likely to
remain adequate, with cash accrual expected at INR6-7 crore over
the medium term against debt obligation of INR3.2-4.2 crore and
no debt-funded capital expenditure plan. Bank limit was utilised
at an average of 82% over the 12 months through December 2017 to
meet large working capital requirement.

The rating reflects the extensive experience of the promoter in
the textile industry. The strength is partially offset by
moderate scale of operations in an intensely competitive market,
susceptibility of operating margin to volatility in raw material
prices, large working capital requirement, and below average
financial risk profile.

Key Rating Drivers & Detailed Description

Weaknesses

* Moderate scale of operations in a competitive industry and
susceptibility of operating margin to volatility in raw material
prices: KGPPL's moderate scale is reflected in turnover of
INR143.48 crore in fiscal 2017 and small networth of INR2.6 crore
as on March 31, 2017. The company focuses on melange yarn. Cotton
accounts for 70-75% of its total cost of production. Operating
profitability was 7.0-10.0% over the four fiscals through 2017.
Any volatility in the availability and prices of cotton will
significantly affect KGPPL's operating margin. Also, the company
operates in an intensely competitive industry. While large
players have better efficiencies and pricing power, small players
are exposed to intense competition and have limited pricing
flexibility, which constrain their profitability.

* Large working capital requirement: The company had gross
current assets of 191 days as on March 31, 2017, driven by
receivables of 133 days. The company maintains inventory of 15-30
days, and had inventory of 30 days as on March 31, 2017. It gets
credit of three months (89 days as on March 31, 2017).

* Below-average financial risk profile: The financial risk
profile is constrained by high gearing and weak debt protection
measures. Gearing was over 16 times and networth was INR2.6 crore
as on March 31, 2017. Furthermore, debt protection metrics are
weak with net cash accrual to total debt ratio and interest
coverage of 0.12 time and 2.13 times, respectively, for fiscal
2017.

Strength

* Extensive experience of the promoter in textile industry
The promoter, Mr P Padmanabhan, has experience of around 13 years
in the cotton yarn business, which helps procure raw material and
maintain the quality of finished products. The company has
established relationships with fabric manufacturers in Tiruppur
(Tamil Nadu), and has demonstrated its ability to survive
business cycles.

Outlook: Stable

CRISIL believes KGPPL will continue to benefit from the extensive
experience of its promoter. The outlook may be revised to
'Positive' if significant and sustained increase in revenue and
profitability lead to higher cash accrual and stronger financial
risk profile. The outlook may be revised to 'Negative' if low
accrual, or stretch in working capital cycle weakens the
financial metrics.

KGPPL, incorporated in 2005 and promoted by Mr P Padmanabhan,
manufactures melange yarn, primarily in counts of 20s-40s, at its
manufacturing unit in Tiruppur.


M.P.K STEELS: CARE Moves D Rating to Not Cooperating Category
-------------------------------------------------------------
CARE Ratings has been seeking information from M.P.K Steels India
Private Limited (MPKS), to monitor the rating vide e-mail
communications/ letters dated November 23, 2017, October 24,
2017, October 4, 2017, July 20, 2017, July 5, 2017 and numerous
phone calls. However, despite our repeated requests, the company
has not provided the requisite information for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. Further, MPKS has not paid the
surveillance fees for the rating exercise as agreed to in its
Rating Agreement. The rating on MPKS's bank facilities will now
be denoted as CARE D; ISSUER NOT COOPERATING; based on best
available information.

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long-term Bank        15.67    CARE D; Issuer not cooperating;
  Facilities                     Based on best available
                                 information

  Short-term bank        7.25    CARE D; Issuer not cooperating;
  Facilities                     Based on best available
                                 information

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

The rating assigned to the bank facilities of M.P.K Steels India
Private Limited (MPKS) continues to remain constrained on account
of ongoing delays in servicing of interest and installment of its
debt owing to stressed liquidity position.

Detailed description of the key rating drivers

At the time of last rating on July 11, 2017 the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Companies):

Key Rating Weakness

Ongoing delays in debt servicing: There are ongoing delays in
servicing of interest and installment of debt owing to stressed
liquidity on account of lower realization from steel products and
linked to cyclical real estate sector.

Incorporated in 2005, M.P.K Steels India Private Limited (MPKS)
is promoted by the MPK group based out of Jaipur (Rajasthan).
MPKS is primarily engaged into the business of manufacturing of
structural products including Mild Steel (M S) angles, channels,
rounds and flats which finds its application particularly in
infrastructure industries ranging from power transmission to real
estate. MPKS has its manufacturing unit situated at Jaipur,
Rajasthan, having installed capacity of 28,800 Metric Tonnes Per
Annum (MTPA) as on March 31, 2016. The company caters to domestic
market under the brand name of 'MPK' with sales concentrated
predominantly in Rajasthan. It procures its key raw material,
from its group concerns as well as from local market.


MOTOR SALES: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Motor Sales
Limited's (MSL) Long-Term Issuer Rating at 'IND B+'. The Outlook
is Stable. The instrument-wise rating actions are as follows:

-- INR91 mil. (reduced from INR186 mil.) Fund-based working
    capital limit affirmed with IND B+/Stable/IND A4 rating; and

-- INR65.68 mil. Term loan with due on January 2017 withdrawn
    (paid in full) with WD rating.

KEY RATING DRIVERS

The affirmation reflects MSL's continued small scale of
operations, weak credit metrics and moderate operating margin due
to its presence in a competitive business and geographically
concentrated operations in Lucknow. In FY17, revenue was almost
stable at INR585 million (FY16: INR582.29 million). MSL achieved
revenue of INR352.63 million in 8MFY18.

EBITDA margins plunged to 2.83% in FY17 (FY16: 8.20%), largely
due to one-time expenses incurred for payment of municipal taxes
and discontinuation of sale of BS-III vehicles from 1 April 2017,
leading to an increase in consumption costs of traded goods.
Consequently, interest coverage (operating EBITDA/gross interest
expenses) plummeted to 0.4x in FY17 (FY16: 1.2x) and net leverage
(net debt/operating EBITDA) to 18.17x (5x).

However, the EBITDA margins rebounded to 7.21% in 8MFY18, thus
leading to an improvement in interest coverage and net leverage
to 1.12x and 7.01x, respectively.

The ratings, however, remain supported by the company's
comfortable liquidity position as reflected by 89.72% average
maximum use of the working capital limits during the 12 months
ended December 2017.

The ratings continue to draw comfort from the promoter's four
decades of experience in the automobile industry and the
company's longstanding relations with Tata Motors Limited.

RATING SENSITIVITIES

Negative: Any further decline in revenue or EBITDA margins
leading to deterioration in the credit metrics could be negative
for the ratings.

Positive: An improvement in revenue and EBITDA margins, leading
to an improvement in the credit metrics could be positive for the
ratings.

COMPANY PROFILE

Established in 1955 by Mr. H C Gupta, MSL is a dealer of Tata
Motors in Uttar Pradesh. It has a 3S (sales-spares-service)
outlet, engaged in the sales of spare parts, accessories and
cars.

The company is diversifying its business into designing and
integration of premium luxury home theatres. It derives a major
portion of its revenue from the automobile dealership (around 97%
to FY17 total revenue), while the remainder is from sale of
cinema and audio-video equipment.


NIRMAL SPINNING: CARE Moves B Rating to Not Cooperating Category
----------------------------------------------------------------
CARE Ratings has been seeking information from Nirmal Spinning
Mills Private Limited to monitor the rating(s) vide e-mail
communications/letters dated December 29, 2017 and numerous phone
calls. However, despite our repeated requests, the company has
not provided the requisite information for monitoring the
ratings. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the
rating. In line with the extant SEBI guidelines, CARE's ratings
on Nirmal Spinning Mills Private Limited's bank facilities will
now be denoted as CARE B; ISSUER NOT COOPERATING.

                      Amount
  Facilities       (INR crore)     Ratings
  ----------       -----------     -------
  Long term Bank
  Facilities           11.10       CARE B; Issuer not cooperating

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

Detailed description of the key rating drivers
At the time of last rating on September 30, 2016 the following
were the rating strengths and weaknesses

Key Rating Strengths

Experienced management and established track record of entity:
The company was incorporated in January, 1983 and is currently
being managed by Mr Vipan Khanna and Mr Pankaj Khanna. Mr Vipan
Khanna and Mr Pankaj Khanna have work experience of four and a
half decades and one and a half decades respectively. The
directors have gained this experience through their association
with NSM only. Additionally, the directors are supported by team
of qualified and experienced staff having varied experience in
technical, marketing and finance aspects of business.

Key Rating Weaknesses

Weak financial risk profile: The financial risk profile of the
company is marked by small scale of operations, low PAT margins,
leveraged capital structure and weak debt coverage indicators
Despite being in operations for more than three decades, the
company's scale of operations has remained small marked by Total
Operating Income (TOI) of INR13.78 crore in FY16. Furthermore,
the company's GCA was low at INR0.67 crore in FY16.

PBILDT margin of the company stood moderate during the last three
financial years on account of company's association with reputed
customers and also due to in house manufacturing of woolen
yarn and fabric. PAT margin, however, stood low at 0.38% in FY16
due to high interest and depreciation costs. The same declined
from 2.92% in FY15.

Furthermore, the capital structure of the company is highly
leveraged with overall gearing ratio of 5.09x as on March 31,
2016 mainly on account of the company's high dependence upon
external borrowings to meet various business requirements.

The debt coverage indicators of NSM remain weak marked by
interest coverage ratio of 1.42x in FY16 and total debt to GCA of
47.69x for FY16.

Working capital intensive nature of operations: NSM is required
to maintain adequate inventory of raw materials for smooth
production process and also maintains inventory of finished goods
to meet the immediate demand of the customers. Furthermore, the
company received additional orders in last month of FY16 which
also resulted in accumulation of stock in the form of raw
material and work in progress inventory. All this resulted in
average inventory period of 532 days for FY16. Furthermore, the
company offers credit period of around six months to its
customers. However, delay in collection from some of its clients
resulted in average collection period of around 313 days for
FY16.

Susceptibility of margins to fluctuation in raw material prices:
Wool, cotton yarn and cashmere yarn are the primary raw materials
required for production of woollen yarn and garments. The raw
material cost forms major part of the cost of sales. Any wide
fluctuation in prices of its key raw materials and inability to
timely pass on the complete increase in the prices to its
customers is likely to affect its profitability margin.

Fragmented and competitive nature of industry: The company
operates in a highly fragmented textile manufacturing industry
wherein the presence of large number of entities in the
unorganized sector and established players in the organized
sector limits the bargaining power with suppliers. Furthermore,
the company is also exposed to competitive pressures from
domestic players as well as from players situated in China and
Bangladesh.

Nirmal Spinning Mills Private Limited (NSM) was incorporated in
January, 1983 and is currently being managed by Mr. Vipan Khanna
and Mr. Pankaj Khanna. NSM is engaged in manufacturing of woolen
yarn and woolen garments at its manufacturing facility located in
Baddi, Himachal Pradesh. The product line of the company mainly
comprises of woolen tops, shawls, scarves, etc. the woolen yarn
manufactured by the company is used for captive consumption in
the manufacturing for woolen garments.


NUTECH APPLIANCES: CARE Moves B+ Rating to Not Cooperating
----------------------------------------------------------
CARE Ratings has been seeking information from Nutech Appliances
to monitor the rating(s) vide e-mail communications/letters dated
December 11, 2017 & December 7, 2017 and numerous phone calls.
However, despite our repeated requests, the firm has not provided
the requisite information for monitoring the ratings. In the
absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on Nutech
Appliances's bank facilities will now be denoted as CARE B+/CARE
A4; ISSUER NOT COOPERATING.

                     Amount
  Facilities      (INR crore)   Ratings
  ----------      -----------   -------
  Long-term Bank
  Facilities           3.77     CARE B+; Issuer not cooperating

  Short-term Bank
  Facilities           3.00     CARE A4; Issuer not cooperating

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

Detailed description of the key rating drivers
At the time of last rating on December 23, 2016, the following
were the rating strengths and weaknesses:

Key Rating Weaknesses

Small scale of operations with low net worth base: The scale of
operations stood small marked by total operating income (TOI) and
gross cash accruals of INR23.96 crore and INR0.36 crore in FY16 (
refers to the period April 1 to March 31). Furthermore, the
partners' capital base stood small at INR2.01 crore as on
March 31, 2016. The small scale limits the company's financial
flexibility in times of stress and deprives it of scale benefits.
Furthermore, the firm has achieved TOI of INR11.10 crore during
H1FY17 (refers to the period April 1 to September 30).

Weak financial risk profile: The total operating income of the
firm has grown from INR8.67 crore in FY14 to INR23.96 crore in
FY16 at compounded annual growth rate (CAGR) of ~66%. This was
attributable to increase in quantity sold. The profitability
margins of the firm has shown an erratic trend in the past three
financial years i.e. FY14-FY16 as the company manufactures large
variety of electric products carrying varied profitability
margins. Further, with a view to garner increased market share,
the firm did not increase its prices in tandem with the increase
in cost of production due to price rise and settled for little
margin of profit. PBILDT margin stood at 5.08% in FY16 as against
7.14% in FY15. Further, PAT margin has been declining on y-o-y
basis for the past three financial years mainly on account of
increase in interest cost. PAT margin stood at 1.03% in FY16 as
against 2.74% in FY15.

The capital structure of the firm stood leveraged mainly on
account of low partner's capital base and high dependence on bank
borrowings to meet out the working capital requirements. Debt
equity and overall gearing stood at 3.32x and 4.79x respectively
as on March 31, 2016 as against 1.87x and 2.19x respectively as
on March 31, 2015. The deterioration in capital structure was on
account of increase in debt in long term debt and higher
utilisation of working capital bank limits as on balance sheet
date.

The coverage indicators of the firm as characterized by interest
coverage and total debt to GCA stood weak at 1.57x and 26.67x
respectively for FY16 mainly on account of high debt levels as
against the profitability.

Working capital intensive nature of operations: The company
extends credit period of 3 to 4 months to its customers owing to
high competition prevailing in the industry. The company
maintains inventory in the form of iron & copper, electrical
wire, coils and other electric components for smooth
manufacturing process. Further, being a manufacturers the firm
has to keep stock of finished goods inventory to meet out the
immediately demand of its customers. All this resulted into high
average inventory of 102 days for FY16. The company receives an
average payable period of around 2-3 months from its suppliers.
The average working capital utilization of its sanctioned limit
remained around 90% for the last 12 months period ended
September, 2016.

Customer concentration Risk: NA is engaged in the manufacturing
of electric equipment's and NA derives around 80% of its total
sales from a single customer. This also exposes the firm's
revenue growth and profitability to its customer's future growth
plans.

Intense competition in the industry due to low entry barriers:
The firm operates in a highly fragmented industry marked by the
presence of a large number of players in the organized as well as
unorganized sector. The competition in the domestic appliances
industry has been increasing since the last two-three years due
to factors like diversion of export focused production capacity
to cater to domestic market on the back of upheavals in the
advanced economies, import of cheaper equipment, especially from
China and large number of smaller players with limited capacity
entering in the industry due to the easy availability of
technology.

Key Rating Strengths

Experienced promoters: Mr. Ajay Mathur, Mr. Varun Suri, Mr. Raman
Suri and Ms. Richa Chaddha are partners of NTA have around 7
years of experience in electric equipment's manufacturing
industry through their association with this entity. Mr. Varun
Suri is a post graduate by qualification and other partners are
graduates by qualification. Mr. Varun Suri, Mr. Raman Suri and
Ms. Richa Chaddha collectively look after the overall operations
of the company. Mr. Ajay Mathur looks after sales and marketing
division of the firm.

Nutech Appliances (NA) was incorporated in 2009 as a partnership
firm. The firm is currently being managed by Mr. Ajay Mathur, Mr.
Varun Suri, Mr. Raman Suri and Ms. Richa Chaddha. The firm is
engaged in the manufacturing of the electrical appliances such as
iron, mixers, gyser, emission rods, cords etc. The firm has its
manufacturing unit located at Baddi, Salon (Himachal Pradesh).
The raw materials used in manufacturing are mainly metal such as
iron & copper, electrical wire, coils and other electric
components which are procured domestically. The company primarily
manufactures for Tosiba Appliances Co Pvt Ltd. (TAC).
Additionally, it also caters to wholesalers and retailers located
in Delhi and near regions.


R. E. CABLES: CARE Lowers Rating on INR62.80cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
R. E. Cables and Conductors Private Limited (RECC), as:

                   Amount
  Facilities    (INR crore)   Ratings
  ----------    -----------   -------
  Long-term Bank     62.80    CARE D; Issuer not cooperating;
  Facilities                  Based on best available information
                              Revised from CARE BBB; Stable

  Short-term Bank    50.00    CARE D; Issuer not cooperating;
  Facilities                  Based on best available information
                              Revised from CARE A3+

Detailed Rationale & Key Rating Drivers

CARE has been seeking for information from RECC to monitor the
ratings vide e-mail communications dated July 24, 2017, October
3, 2017, October 30, 2017, November 5, 2017, January 2, 2018 and
numerous phone calls. However, despite our repeated requests, the
company has not provided the requisite information for monitoring
the ratings. In the absence of minimum information required for
the purpose of rating, CARE is unable to express opinion on the
rating.  In line with the extant SEBI guidelines CARE's rating on
R. E. Cables and Conductors Private Limited's bank facilities
will now be denoted as CARE D; ISSUER NOT COOPERATING.

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

The rating has been revised on account of ongoing delays in debt
servicing by the company.

Detailed description of the key rating drivers

Key Rating Weaknesses

Ongoing delays in meeting of debt obligations: The company was
unable to generate sufficient cash flows leading to strained
liquidity position resulting in ongoing delays in meeting its
debt obligations in time.

Incorporated in 1993, R.E Cables and Conductors Private Ltd
(RECC) is promoted by Mr Ramesh Jain and Mr Hitesh Jain. RECC is
engaged in the business of designing, manufacturing and marketing
of All Aluminum Stranded Conductors (AAC), All Aluminum Alloy
Stranded Conductors (AAAC), All Aluminum conductors galvanized
steel reinforced (ACSR), Double paper covered (DPC) Wires &
Strips cables, Aerial Bunched (AB) Cables and Power Cables and
Bare Aluminium/Aluminium Alloy Wires and strips and submersible
copper wires. These cables and conductors find its use in power
generating and distributing companies. The company markets the
cables and conductors under 'RECC' brand.

RECC has four manufacturing facilities of which three are in
Cherlapally, Hyderabad and the fourth one is at Keesara Mandal,
Ranga Reddy District, Telangana State. The total installed
capacity of all the four units is 59,000 Tonnes Per Annum (TPA).


RAKESH FOLDING: CRISIL Reaffirms B+ Rating on INR5.5MM Loan
-----------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the bank facilities
of Rakesh Folding Works (RFW) at 'CRISIL B+/Stable'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           5.5       CRISIL B+/Stable (Reaffirmed)

   Long Term Loan         .33      CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility    3.67      CRISIL B+/Stable (Reaffirmed)

The rating continues to reflects the firm's weak liquidity and
moderate financial risk profile. These weaknesses are partially
offset by the extensive experience of its proprietor in the
textile processing industry and healthy revenue growth.

Key Rating Drivers & Detailed Description

Weakness

* Moderate financial risk profile: Financial risk profile is
marked by moderate networth, at INR4.19 crore as on March 31,
2017, and debt protection metrics. Networth is expected to remain
at INR4.20-4.50 crore as on March 31, 2018. With debt-funded
capital expenditure of INR4.35 crore expected to be completed by
fiscal 2018, financial risk profile is likely to weaken with
gearing of more than 2.5 times.

* Weak liquidity: Liquidity is weak as cash accruals of INR0.63
crore were just adequate to cover maturing debt of INR0.60 crore
in fiscal 2017. Also bank limit was fully utilized.

Strength

* Extensive experience of the proprietor: Benefits from the
proprietor's two decade-long experience in the industry should
support business. Revenue has increased at 26% from INR38 crore
in fiscal 2016 to INR48 crore in fiscal 2017.

Outlook: Stable

CRISIL believes RFW will continue to benefit from the extensive
experience of its proprietor. The outlook may be revised to
'Positive' if higher-than-expected sales and profitability lead
to better cash accrual. The outlook may be revised to 'Negative'
if substantially low profitability weakens financial risk
profile, especially liquidity.

RFW was established in 1998 by Mr. Rakesh Koyani. The firm is
engaged in dying, bleaching, printing and folding of grey fabric.


RAMKUMAR TEXTILE: CARE Reaffirms B+ Rating on INR1cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Ramkumar Textile Private Limited (RTPL), as:

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long-term Bank
  Facilities            1.00     CARE B+; Stable Reaffirmed

  Long-term/short-      8.75     CARE B+; Stable/CARE A4
  term Bank                      Reaffirmed
  Facilities

  Short-term Bank
  Facilities            2.25     CARE A4 Reaffirmed

Rating Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of RTPL continue to
remain constrained on account of its financial risk profile
marked by modest scale of operations with thin profitability
margins, moderate solvency position and stressed liquidity
profile. The ratings, further, continue to remain constrained due
to its presence in a highly competitive and fragmented textile
industry and vulnerability of margins to fluctuation in the raw
material prices.

The ratings, however, continue to derive strength from the
experienced promoters with established track record of operations
in the textile industry, established marketing network and
location advantage by virtue of being situated in textile cluster
of Bhilwara.

The ability of the company to increase its scale of operations
and improvement in overall financial risk profile coupled with
better management of working capital would be the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Financial risk profile marked by modest scale of operations with
thin profitability margins, moderate solvency position and
stressed liquidity profile: The scale of operations of RTPL stood
modest with modest Total Operating Income (TOI) and thin
profitability margins. During FY17, TOI of the company has
declined significantly by 28.94% over FY16 mainly on account of
decline in demand from foreign markets. The capital structure of
the company improved and stood comfortable. However, the debt
service coverage indicators improved but stood weak marked by
total debt to GCA of 17.61 times as on March 31, 2017.

The liquidity position of the company stood moderate marked by
50-60% utilization during last twelve months ended December,
2017.

Presence in a highly competitive and fragmented textile industry
and vulnerability of margins to fluctuation in raw material
prices: RTPL has presence in the textile industry which is highly
fragmented and competitive with presence of numerous independent
small scale enterprises owing to low entry barriers leading to
high level of competition.

Key Rating Strengths

Experienced promoters with established track record of operations
in the textile industry and marketing network: Overall operations
of RTPL are managed by Mr Harka Ram Somani and Mr Rajesh Somani.
Being present in the textile industry since 1996, the company has
a well-established network of agents and dealers, present in
various countries. RTPL is benefited from the established
distribution network and existing client base. Major sales of the
company are made through agents who already marked their presence
in overseas market.

Location advantage by virtue of being situated in textile cluster
of Bhilwara: The main raw material of the company is polyester
and cotton yarn. The company is located at Bhilwara which is one
of the largest textile clusters in India. RTPL's presence in the
textile manufacturing region results in benefit derived from
cheap and easy availability of raw material, weaving as well as
processing of grey fabrics at cheaper cost and low transportation
and storage cost.

Bhilwara (Rajasthan)-based RTPL was established by Mr Harka Ram
Somani and Mr Rajesh Somani in 1996. RTPL is engaged in the
business of manufacturing of grey fabrics and trading of finished
fabrics as well. The company uses synthetic yarn as raw material
which is procured from traders and processing of finished fabrics
gets done on job work basis from other process houses. RTPL
generates major revenue from export in the overseas countries
like Saudi Arabia, Dubai, Egypt, etc.


RAYALASEEMA EXPRESSWAY: Ind-Ra Affirms D Rating on INR7,030M Loan
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Rayalaseema
Expressway Private Limited's (REPL) bank facilities as follows:

-- INR7,030 mil. Senior project bank loans (Long-term) affirmed
    with IND D rating.

KEY RATING DRIVERS

The affirmation reflects REPL's continued delays in debt
servicing, as stated in the FY17 annual report. The project cost
is estimated to increase to INR25,523.88 million by March 2018
from the original project cost of INR16,360 million, mainly due
to delays in land acquisition, design changes and higher interest
during construction.

According to the October 2017 monthly progress report, the
company has achieved physical and financial progress of 95.88%
and 93.78%, respectively. The full project completion is targeted
by March 2018.

RATING SENSITIVITIES

Positive: Timely debt servicing for three consecutive months
would be positive for the rating.

COMPANY PROFILE

REPL is a special purpose vehicle, incorporated to implement a
188.75km lane expansion (two to four lanes) on the Kadapa-
Mydukur-Kurnool part of National Highway 18 in Andhra Pradesh,
under a 30-year concession from National Highways Authority of
India ('IND AAA'/Stable). REPL's shareholders are KMC Infratech
Road Holdings Limited (53.1%), KMC Road Holdings Private Limited
(36.9%) and IVRCL Limited ('IND D') (10%). After the achievement
of commercial operations in March 2018, the project will be
acquired by Brook Field, as informed by the management.


REGEN POWERTECH: CARE Cuts Rating on INR905cr Bank Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Regen Powertech Private Limited (Regen), as:

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long Term Bank        25.00    CARE D Revised from CARE BBB-;
  Facilities-                    Positive
  Term Loan


  Long Term Bank       350.00    CARE D Revised from CARE BBB-;
  Facilities                     Positive
  (Fund Based)-
  Cash Credit

  Long Term Bank        37.64    CARE D Revised from CARE BBB-;
  Facilities                     Positive
  (Fund Based)-
  ECB

  Long/Short Term      905.00    CARE D Revised from CARE BBB-;
  Bank Facilities                Positive/A3
  (Non-Fund Based)
  BG

  Long/Short Term      310.00    CARE D Revised from CARE BBB-;
  Bank Facilities                Positive/A3
  (Non-Fund Based)-
  LC/BG

  Long/Short Term      315.00    CARE D Revised from CARE BBB-;
  Bank Facilities                Positive/A3
  (Non-Fund Based)-
  LC

  Short Term Bank       50.00    CARE D Revised from CARE A3
  Facilities
  (Fund Based)-
  EPC/PSC

Detailed Rationale

The revision in ratings reflects on going delays in
regularisation of bank guarantee invoked by counterparty in Nov.
2017.

Detailed Rationale and Key Rating Drivers

Key Rating Weaknesses

During the month of November 2017, a counter party had invoked
and encashed the bank guarantee which is yet not regularised on
account of stretched liquidity position of the company.

Regen Powertech Private Limited (Regen) was incorporated in
December 2006 to provide wind power solutions on turnkey
basis and commissioned its first Wind Energy Converter (WEC)
project in August 2008. The company is promoted by Mr Madhusudan
Khemka, Mr. R.Sundaresh and Mr. M. Prabhakar Rao through his
company Mandava Holdings (P) Ltd (formerly Nuziveedu Seeds Ltd).
The entire promoter shareholding of 59.36% is held through a
holding company NSL Power Equipment Trading Pvt. Ltd (NSLPET).
The balance shareholding is with private equity funds.

On July 18, 2017, NSLPET was merged with RPPL. Under the scheme,
the transferee company will issue 114.7983 equity shares of INR
10 each for every 1 equity share held in the transferor company.
Post the merger, RPPL has become an associate company of Mandava
Holdings.

Regen is engaged in the manufacturing of direct drive Permanent
Magnet WECs of 1.5MW. The company has its manufacturing
facilities at Tada, Andhra Pradesh and at Udaipur, Rajasthan.
While the key components of the WEG including rotor, nacelle and
drive parts are manufactured in its facilities, 90% of tower
requirements are sourced through sub-contractors and WEG blades
are sourced from LM Wind Power India Private Limited.


ROYALICA TILES: CARE Assigns B+ Rating to INR6.42cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Royalica Tiles (RCT), as:

                      Amount
  Facilities        (INR crore)   Ratings
  ----------        -----------   -------
  Long-term Bank
  Facilities             6.42     CARE B+; Stable Assigned


Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of RCT are constrained
on account of its small scale of operations coupled with net
loss, moderately leveraged capital structure, weak debt coverage
indicators and stretched liquidity position in FY17 (refers to
the period April 1 to March 31). The ratings are also constrained
due to presence in highly fragmented industry with fortunes
depends upon real estate market limiting the firm's ability to
supply to institutional buyers.

The ratings, however, derives strength from experienced partners
along with having presence in the ceramic tiles hub.

The ability of RCT to Increase its scale of operations and profit
margins in light of volatile raw material and fuel costs would
remain the key rating sensitivities. Furthermore, improvement in
capital structure and debt coverage indicators would also remain
crucial.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of Operations coupled with net loss reported in FY17:
The firm has started its operations from February 2016 and FY17
was the first full year of operations. During FY17, RCT has
registered a Total Operating Income (TOI) of INR 3.15 crore. The
PBILDT margin of RCT stood at 17.97% during FY17, however, the
firm has incurred the net loss during FY17 on account of higher
depreciation and Interest and finance cost.

Moderately leveraged capital structure, weak debt coverage
indicators and stretched liquidity position in FY 17(A): On the
back of higher total debt and that of low net worth base the
capital structure has stood moderately leveraged marked by
overall gearing ratio of 1.45 times as on March 31, 2017.
Further, debt coverage indicators stood weak marked by total debt
to GCA of 42.88 times as on March 31, 2017. Interest coverage
ratio stood at 1.46 times during FY 17 on account of low GCA
level against higher interest & finance cost level.  The
Liquidity position stood stretched marked by below unity current
ratio and quick ratio as on balance sheet date.  Operating cycle
stood elongated at 117 days during FY17 on account of higher
collection period.

Susceptibility of margins to volatility in raw material and fuel
prices coupled with partnership nature of constitution: Profit
margins of RCT remain susceptible to changes in its primary raw
material i.e. clay and other materials coupled with fuel prices.
Further, the constitution as a partnership firm restricts RCT's
overall financial flexibility in terms of limited access to
external funds for any future expansion plans along with inherent
risk of possibility of withdrawal of capital and dissolution of
the firm in case of death/insolvency of any of the partners.

Presence in highly fragmented industry along with fortunes
dependent upon real estate market: High proportion of small scale
units operating in the ceramic industry has resulted in the
fragmented nature of the industry as well as intense competition
within the players thereby limiting pricing flexibility. Further,
most of the demand for the tiles comes from the real estate
industry, which, in India is highly fragmented and cyclical. The
real estate industry is also highly sensitive to the interest
rates and liquidity position in market. Thus any negative impact
on real estate industry will adversely affect the prospects of
ceramic tiles industry as well as the firm.

Key Rating Strengths

Experienced partners coupled with presence into ceramic cluster
Promoters of RCT hold more than a decade of experience into
similar line of operations. Further, manufacturing facilities
of RCT are located at Morbi in Gujarat. Majority of ceramic tiles
production in India comes from the Morbi cluster.

Primary raw materials are easily available from the local market
of Gujarat coupled with availability of inexpensive and skilled
labours, accessibility of water, power connection, gas connection
and the nearby location of the major seaport, Kandla leading to
facilitating delivery of finished products in a timely manner.

Morbi-Gujarat based Royalica Tiles (RCT) is a partnership firm
and was established in February 2016 and currently the firm have
been managed by five active partners Mr. Hasmukh Gardhariya, Mr.
Alpesh Borsaniya, Mr. Rajesh Kaila, Mr. Dilip Varsada, and Mr.
Prashant Jagodana. All the active partners were previously
associated with their associate concern named Doll Ceramic
Private Limited (DCPL). RCT manufactures digitally printed
parking tiles from its manufacturing facility located at Survey
No-457, Jetpar Road, At. Shapar, Morbi-363630 and has an
installed capacity of 9500 boxes per day for the tiles size "12 X
12" as on March 31, 2017. RCT is selling its product under brand
name of "Royalica".


SAMRADDHI COT: CARE Moves D Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has been seeking information from Samraddhi Cot
Fibers Private Limited (SCFPL), to monitor the rating vide e-mail
communications/letters dated December 5, 2017, December 15 and
numerous phone calls. However, despite our repeated requests, the
company has not provided the requisite information for monitoring
the ratings. In the absence of minimum information required for
the purpose of rating, CARE is unable to express opinion on the
rating. Further, SCFPL has not paid the surveillance fees for the
rating exercise as agreed to in its Rating Agreement. In line
with the extant SEBI guidelines CARE's rating on SCFPL's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long-term Bank
  Facilities            7.01     CARE D; Issuer not cooperating

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

Detailed description of the key rating drivers

Key Rating Weakness

As per the banker's written opinion dated February 2, 2017, the
account of SCFPL has become NPA

SCFPL was incorporated in 2011 and commenced its operation from
December 2012. SCFPL is promoted by Mr Prakash Mittal, and the
company is engaged into the business of cotton ginning and
pressing. SCFPL operates from its plant located in Sendhwa,
Madhya Pradesh, with a capacity of processing raw cotton for
producing 200 bales per day and is currently utilizing 80% of its
total capacity. SCFPL procures its raw cotton locally through
brokers and mandis.  Furthermore, during March 2014, SCFPL set up
warehouse facility for storage of cotton bales and cotton seeds.


SHREE BALA: CRISIL Lowers Rating on INR11MM Term Loan to D
----------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating on the long-term bank
facility of Shree Bala Ji Warehouse (SBW) to 'CRISIL
B/Stable/Issuer Not Cooperating' in April 2017. However, the
management started sharing the information, necessary for a
comprehensive rating review. Consequently, CRISIL has downgraded
its rating from 'CRISIL B/Stable/Issuer Not Cooperating' to
'CRISIL D'

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Term Loan              11       CRISIL D (Downgraded from
                                   'CRISIL B/Stable/Issuer Not
                                   Cooperating')

The downgrade reflects the stretch in liquidity, as indicated by
delay in servicing of the term debt recently. The rating also
reflects the modest scale of operations, exposure to high
customer concentration risk, and below-average financial risk
profile. These rating weaknesses are partially offset by the
long-term lease contract with the Haryana State Co-operative
Supply and Marketing Federation Ltd (HAFED), and extensive
experience of the promoter in the agricultural industry.

Key Rating Drivers & Detailed Description

Delay in servicing debt: Stretch in liquidity led to delays in
servicing of term debt recently.

Weaknesses

* Below-average financial risk profile: Financial risk profile is
marked by a high TOL/TNW ratio of 9.79 times as on March 31,
2017, though it has improved from 14.10 times a year ago. Debt
protection metrics were moderate, with net cash accrual to total
debt and interest coverage ratios 0.15 time and 2.0 times,
respectively, in fiscal 2017.

* Small scale of operations: Revenue of INR2.87 crore reflects
the small scale of operations. Revenue may remain stable, aided
by the current lease contract, and is likely to grow by 10%
annually, as per the terms of the agreement. However, unless the
firm expands its capacity by adding warehouses capable of
generating higher rentals, the scale is expected to remain small,
in the medium term.

* High customer concentration risk: The firm is exposed to high
customer concentration risk, as it has lease contracts only with
HAFED. With no diversification plans on the anvil, revenue will
remain susceptible to risks associated with high customer
concentration.

Strengths

* Extensive experience of the partners: The decade-long
experience of the promoters, their strong understanding of local
market dynamics, and the long-term lease contract with HAFED,
will continue to support the business risk profile.

* Assured revenue backed by long-term lease contract and reputed
lessees:  SBW has entered into a 10-year lease agreement with
HAFED, with a clause indicating an upward revision of 10% in
rentals every year. The assured revenue stream supports liquidity
and the debt-servicing capacity.

SBW was set up as a partnership firm of Mr. Sandeep Kodan, Mr.
Ramesh Kumar and Mr. Suresh Kumar in 2012. The firm has
constructed a warehouse with capacity of 52,500 MT to provide
storage of agro based products in Barwara (Haryana). It has
signed a ten-year contract with HAFED. The warehouse has been
constructed with an estimated cost of INR18.10 crore, and began
commercial operations in May 2014.


SUN INDUSTRIAL: CARE Assigns B+ Rating to INR6cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sun
Industrial Automation (SIAS), as:

                       Amount
  Facilities        (INR crore)   Ratings
  ----------        -----------   -------
  Long-term Bank
  Facilities              6       CARE B+; Stable Assigned

  Short-term Bank
  Facilities              3       CARE A4 Assigned

Detailed Rationale& Key Rating Drivers

The ratings assigned to the bank facilities of SIAS take into
consideration small scale of operations and decline in total
operating income during the review period, weak debt coverage
indicator, working capital intensive nature of operations and
constitution of entity as a partnership firm with inherent risk
of withdrawal of capital. The ratings are, however, underpinned
by the established track record and experienced partners, reputed
customers, increase in PBILDT margin albeit decline in PAT margin
and comfortable capital structure.

Going forward, the ability of the firm to increase its scale of
operations, improve its debt coverage indicators and operating
cycle and effectively manage its working capital requirement
without impacting the capital structure would be the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations and decline in total operating income
during the review period: The total operating income of the firm
has been declining during the review period from INR20.49 crore
in FY14 to 18.82 crore in FY16 due to fewer orders from its
customers. The firm purchase raw material from Schneider Electric
India Private Limited (75% of total raw material purchase) and
remaining from some local suppliers then assembles them and
supply the finished products to its customers such L & T
Infrastructure Projects Developments Limited, Megha Engineering &
Infrastructure Limited, Mahindra & Mahindra Limited, Tamil Nadu
Water Supply Board and some other small customers.

Weak debt coverage Indicators: The debt coverage indicators of
the firm remained weak marked by Total debt to GCA which
deteriorated from 2.59x in FY14 to 18.11x in FY16 on account of
increase in debt levels to meet working capital requirements
along with decline in cash accruals from INR1.14 crore in FY14 to
INR0.35 crore in FY16. The interest coverage of the firm declined
from 1.99x in FY14 to 1.51x in FY16 and remained weak at the back
of increase in finance costs as the firm availed higher working
capital facility to meet its working capital requirements.

Working capital intensive nature of operations: The firm has
working capital intensive nature of operations. The firm receives
the payment from its customers on average of 90 days and avails
the credit period from its suppliers up to 90 days. Furthermore,
the firm has to maintain average inventory of 30-45 days to meet
the customer requirement as on need basis. The firm receives 80%
of the payments from its customer after 90 days and 20% in next
five years in case of Govt. Projects & in case of Private sector
projects balance of 20% comes after 18 months. Furthermore, being
a small player, the firm has low bargaining power from its
reputed clientele and collection period stretches to 4-5 months
in some situations. Similarly, the creditors also stretch based
upon realization of payments from customers. The average
utilization of working capital of the firm stood at 75 per cent
in the last 12 months ending Aug 31, 2017.

Constitution of entity as a partnership firm with inherent risk
of withdrawal of capital: With the entity being partnership firm,
there is an inherent risk of instances of capital withdrawals by
partners resulting in lesser of entity's net worth. The
partnership firms are attributed to limited access to funding
Furthermore, the firm is withdrawing its capital for personal
use.

Key Rating Strengths

Established track record and experienced partners: The firm is
actively managed by Mr. S. Venkataramanan who is qualified BE,
BSC (Electronics) and the Managing Partner of Sun Industrial
Automation Solutions. Previously, he worked with Tata Consultancy
Services for five years as an engineer and worked for partnership
firm WS Industries as CEO for 12 years. He has more than three
decades of experience in the Automation Industry. Another
partner, Ms. V. Manjula is a qualified BE who has overall three
decades of experience in the Automation Industry previously
worked with L&T as Deputy general Manager for 25 years.

Reputed customers: The firm is currently has around 150 customers
with them out of which majority of products being supplied to
some reputed customers such as L & T Infrastructure Projects
Developments Limited (40%), Megha Engineering & Infrastructure
Limited (20%), Mahindra & Mahindra Limited (20%), Tamil Nadu
Water Supply Board (5%) and remaining to other small local
customers.

Increase in PBILDT margin albeit decline in PAT margin: The
PBILDT margin of the firm is seen improving y-o-y from 4.61% in
FY14 to 7.08% in FY16 with increase in profit margins in
assembling and distribution of the electrical equipment products.
Whereas, the PAT margin of the firm declined from 4.37% in FY14
to 0.83% in FY16 at the back of increase in interest expenses on
account of increasing working capital requirement to manage day
to day operations.

Comfortable capital structure: The capital structure of the firm
remained comfortable for the last two balance sheet date ended
March 31, 2016 marked by debt equity ratio and overall gearing
ratio stood at 0.04x and 0.79x due to repayment of term loans and
increasing networth on account of accretion of profit. Total debt
of the firm as on March 31, 2016 comprises long term debt
(Vehicle loan) at 5% and remaining 95% pertains to working
capital bank borrowings.

Chennai Based, Sun Industrial Automation and Solutions (SIAS) was
established in the year 2000. Currently, the firm is managed by
its partners Mr. Venkataramanan and Mrs. V Manjula. The firm is
engaged in assembling and trading of Power Factor Meters,
Temperature Indicators and Tachometers by purchasing raw
materials like Panels, Enclosures, and Cables, Lugs and Meters
from Schneider Electric India Private Limited (Purchase 75% of
material) and some other local suppliers. The firm sells its
products to L & T Infrastructure Projects Developments Limited,
Megha Engineering and Infrastructure Limited, Mahindra and
Mahindra Limited, Ashok Leyland Limited and Tamil Nadu Water
Supply Board.


SURYANSH AGRO: CARE Assigns B Rating to INR6.33cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Suryansh Agro (SHA), as:

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long-term Bank
  Facilities            6.33     CARE B; Stable Assigned

Detailed Rationale & Key rating Drivers

The rating assigned to the bank facilities of SHA is primarily
constrained on account of its small scale of operations in the
highly fragmented and government regulated industry and
constitution as partnership concern. The rating is, further,
constrained on account of its financial risk profile marked by
thin profitability margins, weak solvency position, stressed
liquidity position and seasonality associated with agro
commodities.

The ratings, however, favorably take into account the experienced
partners in the agro industry.

Improvement in the scale of operations while sustaining
profitability margins in light of volatile raw material prices
and improvement in the liquidity position are key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Small scale of operations and constitution as a partnership
concern: The scale of operations of the firm stood small as
reflected by Total Operating Income (TOI) of INR2.49 crore with
PAT of INR0.25 lakh in FY17 and tangible net-worth base of
INR2.31 crore as on March 31, 2017. Further, the low net worth
base makes its operations highly susceptible to any business
shock, thereby limiting its ability to absorb losses or financial
exigencies. Further, its constitution as a partnership concern
led to risk of withdrawal of capital.

Financial risk profile marked by thin profitability, weak
solvency position and stressed liquidity position: Being present
in the industry of agriculture commodities, the profitability of
the company is exposed to fluctuation in prices as well as
availability of agriculture commodities. However, during FY17,
PBILDT margin of the firm stood at 20.44% and PAT margin stood at
0.10%.  The capital structure of the firm stood highly leveraged.
Further, the debt service coverage indicators of the firm stood
weak with total debt to GCA of 22.81 times and interest coverage
ratio of 2.43 times in FY17. The liquidity position of the firm
stood stressed marked by full utilization of its working capital
bank borrowings during last twelve months ended November, 2017.

Seasonality associated with agro based commodities and presence
in highly fragmented and government regulated industry: As the
firm is engaged in the business of manufacturing of cattle feed
from agriculture commodities, the prices of agriculture
commodities remained fluctuating and depend on production yield,
demand of the commodities and vagaries of weather. Hence,
profitability of the SHA is exposed to vulnerability in prices of
agriculture commodities.

Key Rating Strengths

Experienced management: Mr Satish Kumar, Partner, has more than a
decade of experience in the agro industry and looks after the
overall affairs of the firm. Mr. Sunil Kumar and Mr. Manish
Kumar, partners, have five and eight years of experience and
looks after marketing and sales and purchase functions
respectively. Further, the promoters of the firm are assisted by
experienced team having longstanding association in the agro
industry.

Suryansh Agro (SHA) Allahabad (Uttar Pradesh) based firm was
formed in February, 2015 as a partnership concern by Sunil Kumar
Kesarwani, Mr. Manish Kumar, Mr, Satish Kumar and Seema Kesarwani
and shares profit and loss equally. The firm is engaged in the
manufacturing of cattle feed through its raw material viz. paddy
husk, rice bran, etc. The firm procures raw material from local
rice mills and sell cattle feeds in Madhya Pradesh, Maharashtra,
Bihar, etc.

The promotes of the firm are also promoting other concern, SPRL
foods Limited, which is engaged in the processing and selling of
Basmati/non-Basmati rice, processing of wheat into various by
products such as flour and semolina for different traders and
millers in Andhra Pradesh, UP, Maharastra, Delhi, MP and
Telangana.


SWARNA CONSTRUCTIONS: CRISIL Reaffirms C Rating on INR6MM Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank loan
facilities of Swarna Constructions (SWC) at 'CRISIL C/CRISIL A4'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Bank Guarantee         7        CRISIL A4 (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     6        CRISIL C (Reaffirmed)

   Secured Overdraft
   Facility               5.5      CRISIL C (Reaffirmed)

The ratings continue to reflect stretched liquidity, driven by
high bank limit utilisation due to working capital-intensive
operations, and a below-average financial risk profile. The
ratings also factor in exposure to intense competition in the
construction industry. These rating weaknesses are partially
offset by the extensive industry experience of the promoters.

Key Rating Drivers & Detailed Description

Weaknesses

* Large working capital requirement: Gross current asset were
substantial at 782 days, driven by inventory of 326 days and
receivables of 65 days, as on March 31, 2017. This has led to
high bank limit utilisation at around 98% over the seven months
through December 2017. Working capital requirement is expected to
remain high over the medium term.

* Exposure to intense competition: The construction and civil
works sector is highly fragmented due to the presence of large
companies as well as smaller local players. While large players
operate in several sectors including roads, hydel projects,
thermal plants, and urban infrastructure, smaller players
specialise in one or two business segments. SWC specialises in
civil works related to construction of roads, water, and
irrigation mainly focusing on small-value projects.

Almost all the revenue is tender-based and hence dependent on the
ability to bid successfully for tenders. The operating profit
margin is modest because of competitive pricing. Profitability on
each project is subject to pricing, availability of labour,
machinery mobilisation, and weather and geological conditions. In
view of the experience for around four decades in civil
construction works, the firm has an edge over other companies of
similar or smaller size. However, it continues to face intense
competition from major players, as well as from many local and
small unorganised players, thus affecting its profitability
margins.

The business risk profile is likely to remain constrained over
the medium term on account of a modest scale of operations and
exposure to intense competition.

Below-average financial risk profile

* Modest networth and low gearing: The networth was INR20.52
crore against total debt of INR5.74 crore, resulting in a gearing
of around 0.28 time, as on March 31, 2017.

* Weak debt protection metrics: The interest coverage ratio was a
negative 0.14 time in fiscal 2017 but is expected to improve over
the medium term. The net cash accrual to adjusted debt ratio was
a negative 0.33 time in fiscal 2017, and is expected at 0.02 time
over the medium term.

The financial risk profile is expected to remain below average
over the medium term.

Strength

* Extensive industry experience of the promoters: The main
promoter, Mr G Ramamohan Rao, has been associated with the civil
construction industry for more than four decades. This has
enabled the firm to establish a healthy relationship with various
government agencies in Andhra Pradesh, Telangana, Maharashtra,
and Madhya Pradesh, and to achieve a moderate success rate of
around 50% in tenders for various projects. The business risk
profile should continue to benefit from the extensive industry
experience of the promoters.

SWC (formerly, G Ramamohan Rao & Co) was set up in 1968 in
Vijayawada, Andhra Pradesh, as a partnership firm by Mr Kishore
Babu, Mr Ramamohana Rao, Mr Ramesh Babu, Mr Jaya Prakasha Rao,
and Mr R Srinivas. The firm undertakes irrigation and water
supply distribution contracts for government agencies.

There was a net loss of INR1.41 crore on revenue of INR19.02
crore in fiscal 2017, against a profit after tax of INR2.56 crore
on revenue to INR42.30 crore in fiscal 2016.


TAJ AGRO: CRISIL Assigns B+ Rating to INR10MM Cash Loan
-------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of Taj Agro Industries LLP (Taj LLP).

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit            10       CRISIL B+/Stable

The rating reflects the exposure to intense competition and
below-average financial risk profile. These weaknesses are
partially offset by partners' experience in the agro commodity
business.

Key Rating Drivers & Detailed Description

Weaknesses:

* Exposure to intense competition: Intense competition constrains
business risk profile. The pulse processing business is highly
fragmented, with numerous small-scale unorganised players
catering to local demands. Consequently, the firm's operating
margin has remained modest in range of 2.5-3.5%.

* Below-average financial risk profile: Financial risk profile is
below-average marked by low net worth of INR4.6-4.7 crore and
TOLANW'at 3-3.25 times as on March 31, 2018.

Strengths:

* Extensive experience of partners: Benefits from the partners'
three decade-long experience, sound understanding of the agri-
commodities business, healthy relations with suppliers and
customers supports business risk profile.

Outlook: Stable

CRISIL believes Taj LLP will continue to benefit from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if increase in scale of operation leads to
high cash accrual and improvement in its financial risk profile.
The outlook may be revised to 'Negative' if revenue and cash
accrual decline, or if working capital requirement is
considerably large, or if any significant debt-funded capital
expenditure weakens financial risk profile, particularly
liquidity.

Established in May, 2014 and promoted by Mr. Himmatlal Chandra
and Mr. Jayesh Ganatra, Taj LLP is engaged in processing and
milling of dal. The company have installed capacity of about
35,000 MTPA of food grain, pulses and lentils (dal).


THOMAS & COMPANY: CARE Reaffirms B+ Rating on INR6.5cr LT Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Thomas & Company Private Limited (TCPL), as:

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long term Bank
  Facilities            6.50     CARE B+/Stable Reaffirmed

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of TCPL continues to
remain constrained by its small scale of operations coupled with
low net worth base, low profitability margins, leveraged capital
structure and weak debt service coverage indicators. The rating
is further constrained by working capital intensive nature of
operations, concentrated order book, business risk associated
with tender based orders and presence in highly competitive
nature of industry.

The rating, however; continue to take comfort from the
experienced promoters and TCPL's revenue visibility owing to
moderate unexecuted order book.

Going forward, the ability of TCPL to increase its scale of
operations with improvement in profitability margins and capital
structure coupled with effectively managing working capital
management shall be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small Scale of operations coupled with low net worth base: The
scale of operations continues to remain small marked by total
operating income of INR12.57 crore and gross cash accruals of
INR0.23 crores in FY17 (FY refers to the period April 1 to
March 31). The company is a small regional player involved in
executing civil construction and structural engineering projects.
The ability of the company to scale up to larger-sized contracts
and having better operating margins, are constrained by its
comparatively low capital base of INR1.33 crore as on March 31,
2017. The small scale of operations in a fragmented industry
limits the pricing power and benefits of economies of scale.

Weak financial risk profile: Company's total operating income has
been fluctuating over the past three years (FY15-17). TOI has
registered a growth in FY16 and decline in FY17 owing to delays
in the execution of projects.

Furthermore, company's profitability margins also fluctuated
during the same period. The company undertakes varied type of
contracts and profitability margins are directly associated with
complexity level of the work awarded. During FY17, PBIDLT margin
the profitability margin of the company improved and stood at
7.57% in FY17 as against 0.54% in FY16 on account of high margin
project executed by the company. However high interest and
depreciation charges restricted the net profitability of the
company and PAT margin stood at 0.14% in FY17.

The capital structure of the company continues to remain
leveraged on account of high dependence on bank borrowings to
meet the working capital requirements and low capital base. The
overall gearing ratio which stood above 3.50x for the past three
balance sheet dates (FY15-FY17).

Working capital intensive nature of operations: The operations of
TCPL continues to remain working capital intensive marked by an
average operating cycle of 200 days during FY17. The company has
to keep inventory at different sites for smooth execution of
contracts and billing for the same is done the same is approved
by the respective client resulting in average inventory holding
period of 299 days in FY17. Further, TCPL has comfortable
collection period evident from less than 30 days during the last
three financial years(FY15-FY17). The company purchases raw
material from traders and distributors located in and around
Delhi-NCR and enjoys credit terms of around 3-4 months from its
suppliers. On the back of high inventory holding period resulted
into high reliance on outside borrowings in order to support day-
to-day operations and working capital limit utilization stood
around 95 per cent of the sanctioned limits from the last 12
months ended November 2017.

Business risk associated with tender based-orders: The company is
exposed to the risk associated with the tender-based business,
which is characterized by intense competition. The growth of the
business depends on its ability to successfully bid for the
tenders and emerge as the lowest bidder. Furthermore, any changes
in the government policy or government spending on projects are
likely to affect the revenues of the company.

Competition from the organized and small/midsized unorganized
players: The Indian construction industry is characterized as
fragmented and competitive in nature as there are a large number
of players at the regional level. Hence, going forward, due to
the increasing level of competition, the profits margins are
likely to be range bound.

Key Rating Strengths

Experienced promoters: TCPL promoted by Mr. Thomas Mathew, Mrs.
Baby Mathew and Dr. Wills Thomas with collective experience of
more than 50 years in the civil construction industry. The
company has developed an expertise in the civil construction
work; this has helped the company in procuring repeat orders from
its customers. All the directors collectively look after the
overall operations of the company.

Moderate order book although concentrated with few large orders:
As on December 31, 2017, the company had an unexecuted order book
of INR52.33 crore which translates into 4.16x of the total
operating income of FY17. Majority of the current order book is
to be executed in the next 24 months, thereby providing revenue
visibility over the next two years.

Delhi based, Thomas & Company Private Limited (TCPL) was
incorporated in 1997 by Mr. Thomas Mathew, Mrs. Baby Thomas and
family. (TCPL) is engaged in the civil construction and
structural engineering projects for private players such as
construction of institutional and residential buildings,
corporate offices, schools, religious buildings and hotels.
Thapar Builder Pvt Ltd, Devior Infra Pvt Ltd and Kay
International Ltd are name of few major customers.


TIRUPATI ORGANICS: CARE Assigns B+ Rating to INR6cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Tirupati Organics Private Limited (TOPL), as:

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Long-term Bank
  Facilities            6.00     CARE B+; Stable Assigned

  Short-term Bank
  Facilities            0.25     CARE A4 Assigned

Detailed Rationale and key rating drivers

The ratings assigned to the bank facilities of TOPL is primarily
constrained on account of its small scale of operation, low
profitability, leveraged capital Structure, weak debt protection
metrics and moderate liquidity position along with working
capital intensive nature of operation. The ratings are further
constrained on account of TOPL's presence in highly competitive
and fragmented chemical industry and susceptibility of operating
margins to volatile raw material prices.  The ratings, however,
derives comfort from vast experience of the promoters.

The ability of TOPL to increase its scale of operations with
improvement in profitability, capital structure and debt coverage
indicators along with efficient management of its working capital
requirement will be the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with low profit margins: TOPL's scale
of operations continues to remain small marked by Total Operating
Income (TOI) of INR10 crore during FY17. The profitability level
stood at low level marked by PBILDT margin and PAT margin of
4.62% and 1.34% respectively during FY17.

Leveraged capital Structure and weak debt protection metrics:
TOPL's capital Structure as on March 31, 2017 remained leveraged
marked by overall gearing ratio of 3.05 times on account of high
total debt as against low networth base. With low profitability
and leveraged capital structure, the debt coverage indicators
stood weak marked by total debt to GCA of 69.80 times as on
March 31, 2017 and interest coverage of 2.67 times during FY17.

Moderate liquidity position along with working capital intensive
nature of operation: Liquidity position stood moderate marked by
current ratio of 2.53 times as on March 31, 2017. The operation
stood working capital intensive marked by full utilisation of its
working capital limit for past one year ended November 2017 and
high ratio of net working capital to total capital employed at
91% as on March 31, 2017.

Presence in highly fragmented and competitive chemical industry:
TOPL is currently into manufacturing of chemicals. The chemical
industry is highly fragmented in nature with presence of huge
number of organized as well as unorganized players in it. TOPL
being into chemical processing faces high degree of competition
from numerous players.

Operating margins susceptible to volatile raw material prices:
TOPL's profitability is susceptible to volatility in raw-material
price movement as it accounts for roughly 75% of the total
cost of sales. Hence, the profitability margins of the entity
could get adversely affected with any sudden spurt in the raw
material prices.

Key Rating Strengths

Experienced promoters: TOPL is promoted by Mr. Om Prakash Agrawal
and Mrs. Shammi Garg who possess 30 and 12 years of experience
respectively in chemical industry and look after overall
management of the company.

Delhi based Tirupati Organics Private Limited (TOPL) is a private
limited company incorporated in 1992 to manufacture chemical viz.
Vinyl Sulphone Ester which is used in manufacturing of Dyes,
Pigments etc. TOPL is promoted by Mr. Om Prakash Agrawal and Mrs.
Shammi Garg who possess more than a decade experience in chemical
industry. TOPL has manufacturing plant in Ankleshwar (Gujarat)
with installed capacity of 1200 MT per annum as on March 31,
2017.


VENKATA SRI: CRISIL Reaffirms B+ Rating on INR9.16MM Loan
---------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the long-term bank
loan facilities of Venkata Sri Balaji Exports (VSBE) at 'CRISIL
B+/Stable'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Buyer's Credit       9.16       CRISIL B+/Stable (Reaffirmed)
   Cash Credit          5          CRISIL B+/Stable (Reaffirmed)
   Long Term Loan       7.84       CRISIL B+/Stable (Reaffirmed)

The rating reflects geographical concentration in revenue, large
working capital requirement, and a below-average financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoter in the granite industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Geographic concentration in revenue: The firm derives 50-60% of
revenue from the US, Europe, and the Middle East. The high
geographic concentration could exert pressure on revenue and
receivables in case of any unforeseen conditions/changes in
export regulations or in economic conditions. Furthermore, any
revision in the business policies of counter-parties can hamper
the inflow of orders.

* Below-average financial profile: The networth is low, the
gearing high, and the debt protection metrics moderate. The
networth was around INR5.61 crore and the gearing at 3.85 times,
as on March 31, 2017. The net cash accrual to total debt ratio
was around 16% and the interest coverage ratio at around 3.62
times, in fiscal 2017.

* Working capital-intensive operations: Gross current assets were
high at around 148 days as on March 31, 2017. That's mainly due
to the preparatory time of 10-15 days for cutting and moving
granite blocks to the factory site, processing and finishing
period of 20-30 days, 40-50 days for moving the finished slabs to
the foreign destination, and credit of about 60 days to the
client. Furthermore, raw material is sourced from various local
quarry owners in Andhra Pradesh and Telangana against advance
payment. Operations are likely to remain working capital
intensive over medium term due to high inventory and advance
payment to suppliers.

Strength

* Extensive industry experience of the promoter: The promoter, Mr
S V Bala Subrahmanyam, has an experience of more than a decade in
the granite processing industry. Due to association with SVB
Granites and Vasavi Granites, which undertake quarrying and
export of granites, he has developed a strong understanding of
the intricacies involved in the business and a healthy
relationship with suppliers and customers in India and abroad.
The industry experience should help to ramp-up the scale of
operations over the medium term.

Outlook: Stable

CRISIL believes VSBE will continue to benefit from the extensive
industry experience of its promoter. The outlook may be revised
to 'Positive' if there is a substantial and sustained increase in
revenue and profitability, or an improvement in working capital
management. The outlook may be revised to 'Negative' in case of a
steep decline in profitability, significant deterioration in the
capital structure because of large, debt-funded capital
expenditure, or a stretch in the working capital cycle.

VSBE, established by Mr Subrahmanyam in 2014 as a partnership
firm, has set up a granite cutting and processing unit `in
Ongole, Andhra Pradesh.


VINSHIL POLYCHEM: CARE Reaffirms B+ Rating on INR.50cr Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Vinshil Polychem (VNP), as:

                       Amount
  Facilities        (INR crore)   Ratings
  ----------        -----------   -------
  Long term Bank
  Facilities             0.50     CARE B+; Stable Reaffirmed

  Short term bank
  Facilities             6.00     CARE A4 Reaffirmed

Detailed Rationale and key rating drivers

The ratings assigned to the bank facilities of VNP continue to
remain constrained by its small scale of operations & low net
worth base, low profitability margins, leveraged capital
structure, weak coverage indicator and elongated operating cycle.
The ratings are, further constrained by partnership nature of its
constitution, foreign exchange fluctuation risk, volatility
associated with the traded product, and competitive nature of
industry.

The ratings, however, continue to take comfort from experience
partners in trading business and growing scale of operations.

Going forward; ability of the firm to profitably increase its
scale of operations while improving capital structure and ability
to manage exchange rate fluctuations shall be the key rating
sensitivities.

Detailed description of the key rating drivers

Key rating weakness

Small scale of operations: The scale of operations remained small
marked by a total operating income and gross cash accruals of
INR12.61 crore and INR0.10 crore during FY17 (refers to the
period April 1 to March 31) as against INR 7.95 crore and INR
0.06 crore during FY16. The small scale limits the company's
financial flexibility in times of stress and deprives it from
scale benefits.

Low profitability margins, leveraged capital structure and weak
coverage indicators: The profitability margins of the firm
continue to remain low on account of trading nature of business
operations having limited value addition coupled with competitive
nature of business. The PBILDT margin of the firm stood at 2.94%
in FY17 as against 3.36% in FY16 on account of change in product
mix. Further, interest cost continues to restrict the net
profitability and same stood below 0.80% for the past two
financial years i.e. FY16 and FY17.

The capital structure of the company continues to remain
leveraged owing to low partners' capital base. The debt equity
ratio and overall gearing ratio improved and stood at 0.58x and
3.08x as on March 31, 2017 as against 0.73x and 3.94x as on March
31, 2016. The improvement in debt equity was mainly on account of
higher partners' capital base owing to infusion and retention of
profits. Further, improvement in overall gearing has also taken
into account lower utilization of working capital limits as on
balance sheet date. Furthermore, the debt service coverage
indicators also continued to remain weak and stood at 1.36x and
48.75x respectively in FY17.

Elongated operating cycle: The operating cycle of the firm stood
at 110 days for FY17. VNP maintains average inventory of around
30 days to meet immediate requirements of its customers. The firm
operates in a highly competitive and fragment industry and adopts
a liberal credit policy wherein it gives credit up to 3-4 months
to its customer and receives credit of around a month from
its suppliers. The working capital limits remained 90% utilized
for past 12 months ending October, 2017.

Foreign exchange fluctuation risk: VNP's procurement is majorly
in the form of imports and procurement is dependent on the
imports than the domestic market. Therefore, the firm's
profitability margins are exposed to volatility in foreign
exchange. The risk is more evident now that the rupee has
registered considerable volatility and could leave the company
carrying costly inventory in case of sudden appreciation.

Volatility associated with the traded product: The firm is
exposed to price volatility risk due to the volatility
experienced in the prices of the traded product such as polymers
etc. which is a crude derivative. Thus, any steep fluctuation in
their prices has a direct impact on the profitability margins of
the firm. Furthermore, the firm has no long-term contract with
the suppliers.

Key Rating Strengths

Experienced partners in trading business: VNP was established by
Mr. Kapil Goel and Mrs. Shilpa Agarwal in June, 2014. Mr. Kapil
Goel has an experience of around a decade in trading of synthetic
polymers and chemicals mainly through his association with
Rajshila Synthetics Private Limited (incorporated in June 2009).
He looks after the overall operations of the firm with the
support of his sister; Ms. Shilpa Agarwal.

Growing scale of operations: The scale of operation of the
company is growing continuously. For the period FY15-FY17, VNP's
total operating income grew from INR4.20 crore in FY15 to
INR12.61 crore in FY17 reflecting a compounded annual growth rate
(CAGR) of 73.27% owing to higher quantity sold to existing
customer. Further, the company has achieved TOI of ~INR9.95 crore
in 8MFY18
(refers to the period April 1 to November 30).

Delhi based, Vinshil Polychem (VNP) was established as a
partnership firm in June, 2014 and commenced its operations
from July, 2014. The firm is currently being managed by Mr Kapil
Goel and Mrs. Shilpa Agarwal sharing profits and loss equally.
The firm is engaged in trading of synthetic polymers (such as
EVA, PVC, PVAC etc.) and chemicals (such as stearic acid, oleic
acid etc.) which finds its application in footwear industries.
VNP primarily procures synthetic polymers (about 90% of the total
purchases for FY17) from manufacturers located in Korea,
Thailand, UAE and China. Also, VNP procures the traded product
domestically from various traders located in pan India. The firm
sells its products directly to footwear manufacturers located in
Haryana and Delhi.



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


SOECHI LINES: Fitch Affirms B+ IDR; Outlook Remains Negative
------------------------------------------------------------
Fitch Ratings has affirmed Indonesia-based PT Soechi Lines Tbk's
(Soechi) Long-Term Issuer Default Rating (IDR) of 'B+'. The
Outlook remains Negative.

Fitch has also assigned a 'B+(EXP)' expected rating with a
Recovery Rating of 'RR4' to the proposed US dollar senior
unsecured notes to be issued by Soechi's wholly owned subsidiary
Soechi Capital Pte. Ltd. The notes will be guaranteed by Soechi
and all its operating subsidiaries, and the proceeds are intended
to be used mainly to refinance Soechi's existing debt. The final
rating is subject to the receipt of final documentation
conforming to information already received.

Soechi's key shipping business is relatively stable, supported by
growing demand, a robust market position and regulatory
protection. However, the shipyard segment has underperformed
relative to Fitch expectations and has been a drag on the
leverage profile. The situation is compounded by a lack of new
shipbuilding contracts. The Negative Outlook factors in the risk
that Soechi's FFO adjusted net leverage will remain higher than
4.0x - the level above which Fitch would consider negative rating
action - until 2018, given a lack of cash flow visibility for its
shipyard business and higher-than-estimated shipping capex
without a commensurate improvement in EBITDA.

KEY RATING DRIVERS

Weak Shipyard Performance: Soechi's has invested around USD200
million in its shipyard, which began operations in 2012. However,
annualised 9M17 EBITDA was weak at USD2 million, resulting in a
significant drag on the consolidated leverage profile. Soechi has
not secured any new shipbuilding contracts after being awarded
contracts for three new ships by the Ministry of Transportation
in 2015, and has had to postpone delivery of existing orders due
to delays in construction and inspections. Soechi's current
order-book includes three ships it is building for PT Pertamina
(Persero) (BBB/Stable) under contracts worth more than USD60
million.

The company has completed construction of Pertamina's first ship
in January 2018, and expects to deliver it soon while delivery of
the other two is targeted for 4Q18, around two years behind
initial plans. The company expects new orders to flow in
gradually, and also expects to earn ship-repair revenues from
2018, having completed capex on key facilities including a
floating dry dock. Fitch assume increased shipyard revenue from
2018, but the lack of new contracts presents a risk to Fitch
forecasts.

Resilient Shipping Business: Soechi's tanker capacity is geared
predominantly towards transportation of oil and related products.
Indonesia's oil consumption has grown steadily, supported by an
expanding economy, and tanker demand is likely to be sustained.
Soechi's fleet capacity under longer-term time-charter contracts
was sustained at a relatively high level of 95% as of September
2017 (end-2016: 85%), indicating robust demand. A higher share of
time-charter contracts improves cash flow stability, and Fitch
think Soechi is well placed to secure further such contracts for
its expanding fleet.

The outlook for Soechi's shipping business is supported by its
robust market position as the country's largest independent
tanker operator. Indonesia's shipping industry is fragmented,
with a large number of small players, and enjoys protection from
foreign competition by cabotage laws - which mandate the use of
Indonesia-flagged vessels for domestic transportation, and limit
foreign ownership to 49% in JVs for operation of Indonesia-
flagged vessels.

Old Fleet, Small Size: The average age of Soechi's fleet
(weighted by capacity) is around 18 years, against a typical
useful ship life of 30 years. The company's fleet-age profile
corresponds with its strategy of operating older ships, which is
the norm in Indonesia's market. The average age of Indonesian-
flagged vessels is more than 20 years. However, older ships have
higher maintenance expenses and are more prone to operational
issues. In addition, Soechi's fleet of 39 revenue-earning ships
as of September 2017 is also small relative to global peers.

Customer Concentration, but Low Risk: Pertamina is the company's
largest customer, contributing 60% to Soechi's 9M17 revenue. This
exposes Soechi to the risk of Pertamina not renewing contracts,
not granting new contracts or defaulting on its payments.
However, Fitch believe these risks are significantly alleviated
by Soechi's long-standing relationship with Pertamina (Soechi's
predecessor companies have been contracted by Pertamina since
1981), Pertamina's robust credit profile, as well as Soechi's
leading market position and conservative capex policy, is tied to
the demand outlook.

Negative FCF, Risks to Deleveraging: Fitch forecast negative free
cash flow (FCF) from 2018 due to steady spending on vessel
acquisitions, and FFO adjusted net leverage to remain at around
4x over the next three years. Fitch assume a moderation in
Soechi's fleet capacity growth, and think its leverage profile
could worsen with a higher rate of expansion. In addition,
Soechi's credit profile could deteriorate if it does not maintain
capex discipline over acquisitions tied to the likelihood of new
contracts. Soechi's FFO fixed-charge cover should remain
relatively healthy at above 3x.

DERIVATION SUMMARY

Soechi's rating can be compared with that of Russian shipping
company PAO Sovcomflot (BB/Positive), which is rated 'BB-' on a
standalone basis. Sovcomflot enjoys a one-notch uplift due to
strong government support. Its rating is underpinned by a robust
business profile - a leading global position as tanker owner; a
healthy share of long-term contracts with about two-thirds of the
fleet being on time charters in 2016; a fairly young fleet; and
diversified customer base. Sovcomflot's fleet is much larger and
diversified than Soechi, resulting in an EBITDAR which was more
than 10x that of Soechi in 2016. Sovcomflot's FFO adjusted net
leverage was similar to that of Soechi in 2016, it has a better
business profile. Fitch feel this justifies the differential in
the ratings.

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

- Soechi's deadweight tonnage to increase by a compound annual
   growth rate (CAGR) of around 6% over 2017-2020. This is lower
   than the growth rate of 17% over 2013-2016.
- Flat tanker day-rates.
- Average annual capex, including upfront docking charges, of
   around USD60 million over 2017-2020.
- Maintenance expenses to rise by 2% per year and salaries by 5%
   per year from 2017, after adjusting for an increase in fleet
   size.
- General and administrative expenses to increase by 8% per year
   from 2017.
- Shipyard revenue to increase to USD30 million in 2018 (2016:
   USD24 million) with ship repair business starting to
   contribute to earnings.

The recovery analysis assumes that Soechi would be liquidated in
case of bankruptcy. Fitch have also assumed a 10% administration
claim.

Liquidation Value Approach
- Fitch's liquidation value of around USD280 million is at a
   significant discount to Soechi's latest appraised value for
   its fleet of around USD370 million provided by a domestic
   appraiser, and is closer to the scrap value of the ships -
   given their old age.
- Soechi had secured debt of USD252 million as of 30 September
   2017. In addition, Fitch assume the full use of the USD5
   million of committed but undrawn credit facilities, implying a
   total of USD257 million for the debt waterfall. Fitch have
   assumed that it refinances USD200 million of the outstanding
   debt with the proposed senior unsecured bond, leaving USD57
   million of prior ranking secured debt.
- The waterfall results in a recovery of over 50% for the
   proposed note holders. However, Fitch have rated the senior
   unsecured bonds 'B+(EXP)'/'RR4' because, under Fitch Country-
   Specific Treatment of Recovery Ratings criteria, Indonesia
   falls into Group D of creditor friendliness, and the
   instrument ratings of issuers with assets located in this
   group of countries are subject to a soft cap at the issuer's
   IDR.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Negative Rating Action Include:
- Inability to reduce FFO adjusted net leverage to 4x or lower
   by 2018
- FFO fixed-charge cover below 3x on a sustained basis
- Substantial deterioration of the operating environment

Developments that may lead to a revision of the Outlook to Stable
include the issuer not meeting any of the negative rating
sensitivities.

LIQUIDITY

Manageable Liquidity: Soechi's debt comprises secured bank loans
at present, amounting to USD252 million as of September 2017. The
loans require regular repayments and therefore Soechi would need
sustained refinancing, based on Fitch forecast for negative FCF.
However, Fitch think refinancing related risk is low due to its
diverse banking relationships and discrete, cash generating
nature of the underlying assets. If the proposed bond is
successful, Soechi's liquidity profile will improve as the
refinancing of current debt should significantly reduce repayment
requirements in the next four years.


SOECHI LINES: Moody's Affirms B1 Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service has affirmed the B1 corporate family
rating (CFR) of Soechi Lines Tbk. (P.T.) (Soechi).

Moody's has also assigned a B1 senior unsecured rating to the
proposed notes to be issued by Soechi Capital Pte. Ltd., a wholly
owned subsidiary of Soechi. The proposed notes will be
unconditionally and irrevocably guaranteed by Soechi and all its
material subsidiaries, who own all of Soechi's vessels and its
shipyard.

The outlook on the ratings is stable.

Proceeds from the notes issuance will be used to repay $184
million of indebtedness, fund the interest reserve account and
other corporate purposes.

RATINGS RATIONALE

"The affirmation of the B1 corporate family rating reflects
Moody's expectation that recent revenue and earnings growth
trends will extend into 2018, as 2017 vessel additions achieve
higher utilization levels in 2018," says Brian Grieser a Moody's
Vice President and Senior Credit Officer.

Moody's expects Soechi's earnings stability from its shipping
business, supported by increased use of time charters, to
maintain adjusted debt-to-EBITDA of between 4.0x-4.5x over the
next 12-18 months

The rating also reflects the high barriers to entry created by
cabotage laws in Indonesia, which mandate the use of Indonesian-
flagged vessels for domestic sea freight transportation, and the
benefits of a strong and long-standing relationship with
Pertamina (Persero) (P.T.) (Baa3 positive), who accounted for 62%
of revenue during the first nine months of 2017.

Moody's also notes that Soechi's revenue visibility improved in
2017 as the company increased its exposure to time charters to
95% of its fleet's DWT from 85% at the end of 2016.

The rating, however, remains constrained by Soechi's relatively
small scale of operations globally, its significant reliance on
its two very large crude carriers (VLCC), which account for
roughly 38% of the fleets dead weight tonnage, significant on-
going vessel acquisitions, which have historically led to
negative free cash flow, and the formative stage of its
shipbuilding operations.

"The completion of the planned refinancing will simplify Soechi's
capital structure, reduce scheduled amortization requirements and
reduce borrowings on its $50 million revolver due 2021 to zero.
Together, Moody's expect cash flows and revolver availability to
provide ample liquidity for Soechi to fund its growth capital
expenditures," added Grieser.

The B1 rating on the proposed notes reflect Moody's expectation
that the notes will represent the large majority of debt in the
company's capital structure upon application of the proceeds of
the notes to repay $184 million of outstanding secured loans.

The stable outlook reflects Moody's expectation that Soechi will
maintain its longstanding relationship with Pertamina and
preserve its good revenue visibility through its continued use of
time charter contracts. The outlook also takes into account the
risks arising from the formative stage of its shipbuilding
business and its relatively small contribution to overall
earnings.

The rating could be downgraded if the company materially raises
debt levels to fund new tanker acquisitions over the next 12-18
months or if its shipbuilding business fails to meet its new
build terms and is required to reimburse any installment payments
to customers. Furthermore, downward pressure on the ratings could
build if: (1) any legislative developments arise that loosen
cabotage laws; (2) Pertamina shifts management of its fleet such
that it reduces its exposure to Soechi; or (3) either of Soechi's
two VLCC's are out of service for an extended period.

Credit metrics that could lead to a downgrade include debt-to-
EBITDA leverage exceeding 4.5x or interest coverage -- as
measured by (FFO + interest) to interest expense -- falling below
2.25x.

The rating could be upgraded if management continues to
successfully grow its shipping business and increase profit
contribution from its Shipyard while lowering leverage. Given
Soechi's small scale and customer and vessel concentration,
Moody's would expect leverage, as measured by debt-to-EBITDA, to
be around 3.0x on a sustainable basis and interest coverage of
over 4.0x before considering an upgrade.

Furthermore, an upgrade is unlikely before its shipyard business
develops a track record of executing orders in a timely and
profitable manner while sustaining a modest order backlog.

The principal methodology used in this rating was Shipping
Industry published in December 2017.

Soechi, headquartered in Jakarta, Indonesia, is mainly engaged in
the business of providing crude oil, petroleum products and
liquefied petroleum gas (LPG) shipping and shipyard services
principally to companies operating in the domestic oil and gas
and chemical sectors in Indonesia. Soechi operates a fleet of 39
vessels.

The company has also ventured into the ship-building and
maintenance business through its 99.99% subsidiary PT Multi Ocean
Shipyard.

Soechi is a family owned business with the members of the Utomo
family holding an approximate 85% stake, and the remaining 15%
publicly held. The company completed its IPO in December 2014 and
is listed on the Indonesian Stock Exchange.



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


TOSHIBA CORP: Considering IPO for Memory Chip Business
------------------------------------------------------
Leo Lewis and Kana Inagaki at The Financial Times reports that
Toshiba Corp. is considering an IPO of its memory chip business
in the event that the agreed $18 billion sale of the prized unit
to Bain Capital fails to gain antitrust approval by the end of
March, says people familiar with the plans.

The IPO proposal, which some analysts and Toshiba shareholders
who spoke to the Financial Times favor over the existing deal, is
among a number of contingency plans and options under
consideration by top executives of the troubled conglomerate as
it continues to face pressure from investors and lenders.

The sale of the memory business to the Bain-led consortium would,
if completed, be the biggest private equity deal in Japan and was
signed last year as part of emergency efforts to shore up
Toshiba's balance sheet, the FT says.

Since it was signed, a number of new Toshiba investors, who were
brought on to the shareholder register through a $5.4bn equity
issuance last November, have expressed concerns that the Bain
offer undervalues the chip business, the FT notes. The equity
issuance, which followed an upgrade of Toshiba's status by the
Tokyo Stock Exchange, has dramatically improved the company's
finances - to the point, argue some of its shareholders, that the
company should seriously reconsider whether it is still in its
interests to sell one of its biggest sources of growth.

Multiple people close to Toshiba have confirmed that an IPO
proposal is among alternatives that have been presented to top
management, the report says.

"An IPO would be a better option for Toshiba. They would capture
value that they are giving up to Bain. The deal was done when
Toshiba's bargaining position was weak, but their circumstances
are different now," the FT quotes Damian Thong, Macquarie
analyst, as saying.

According to the FT, Massive writedowns on Toshiba's US nuclear
business, which were revealed in December 2016, plunged the
company into negative shareholder equity - a state from which it
had to exit by the end of March 2018 to avoid being delisted from
the Tokyo exchange. The report says the crisis was deepened by
the fundraising limitations placed on Toshiba by the exchange
following the company's false accounting scandal in 2015.

Toshiba's top management, say people who dealt directly with them
during the crisis, were "single minded" in their determination to
avoid delisting and were effectively forced to pursue large asset
sales by their largest lenders, which include Mizuho and Sumitomo
Mitsui Financial Group, the FT relays.

Because the March 31 deadline lay at the heart of the race to
sell the prized memory chip business, its agreement with Bain
gives Toshiba the option to explore alternatives if the deal has
failed to gain approval from a series of antitrust regulators
around the world, according to the FT.

Although several major regulatory bodies have approved the deal,
and most experts believe it will eventually be granted
universally, analysts and people close to Toshiba believe there
is a significant chance that the Chinese regulator will not have
made its decision by the end of March, the report states.
Analysts said that, as matters stand, there is a 20% chance the
Bain deal will not go through.

The FT relates that bankers and other advisers close to Toshiba
said that, even if the March deadline is missed, Toshiba's most
likely option would be to renegotiate an extension with Bain
until June.

A Toshiba spokesman said the company believed the Bain deal is
the best option regardless of whether the deal can be cleared by
the end of March, the FT adds.

                          About Toshiba Corp

Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others.  The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-
scale integrated (LSI) circuits for image information systems and
liquid crystal displays (LCDs), among others.  The Social
Infrastructure segment offers various generators, power
distribution systems, water and sewer systems, transportation
systems and station automation systems, among others.  The Home
Appliance segment offers refrigerators, drying machines, washing
machines, cooking utensils, cleaners and lighting equipment.  The
Others segment leases and sells real estate.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 24, 2018, S&P Global Ratings said it has raised two notches
to 'CCC+' from 'CCC-' both its long-term corporate credit and
senior unsecured debt ratings on Japan-based capital goods and
diversified electronics company Toshiba Corp. S&P said, "We also
placed the ratings on CreditWatch with positive implications. We
have kept our 'C' short-term corporate credit and commercial
paper program ratings on Toshiba on CreditWatch with positive
implications."

The TCR-AP on Dec. 15, 2017, reported that Moody's Japan K.K.
affirmed Toshiba Corporation's Caa1 corporate family rating and
senior unsecured debt ratings, and its Ca subordinated debt
rating. Moody's has also changed the ratings outlook to stable
from negative. At the same time, Moody's has affirmed Toshiba's
commercial paper rating of Not Prime.


TOSHIBA CORP: Completes Sale of Westinghouse Claims
---------------------------------------------------
Reuters reports that Toshiba Corp. said on Jan. 23 it has
completed the sale of its claims against bankrupt U.S. nuclear
unit Westinghouse Electric Co LLC, a move that allows the
Japanese conglomerate to replenish its depleted capital base and
remain listed.

The $2.16 billion sale, to a group of hedge funds led by the
Baupost Group, will also come with tax benefits and improves
Toshiba's balance sheet by about JPY410 billion ($3.7 billion),
Reuters relates.

Liabilities at Westinghouse plunged Toshiba into crisis last
year, and the beleaguered Japanese firm put up its prized memory
chip business - the world's second biggest producer of NAND
memory chips - for $18 billion, the report says.

Reuters says Toshiba also plans to transfer its stake in
Westinghouse to Canada's Brookfield Business Partners for $1 by
March 31. Both deals will help clear a path for Westinghouse to
emerge from bankruptcy, the report notes.

According to Reuters, the sale of the claims and a new share
issue worth JPY600 billion to overseas funds have helped Toshiba
avoid falling into negative net worth for a second consecutive
year, allowing it to remain a listed company.

Reuters relates that the funds have also meant that it faces less
pressure to complete the sale of the chip unit to a consortium
led by U.S. private equity firm Bain Capital and some
shareholders are pushing Toshiba to reconsider.

Toshiba, however, is sticking with its efforts to complete the
sale of the chip unit by the end of March, saying it needs to
further bolster the capital base, the report adds.

                          About Toshiba Corp

Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others.  The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-
scale integrated (LSI) circuits for image information systems and
liquid crystal displays (LCDs), among others.  The Social
Infrastructure segment offers various generators, power
distribution systems, water and sewer systems, transportation
systems and station automation systems, among others.  The Home
Appliance segment offers refrigerators, drying machines, washing
machines, cooking utensils, cleaners and lighting equipment.  The
Others segment leases and sells real estate.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 24, 2018, S&P Global Ratings said it has raised two notches
to 'CCC+' from 'CCC-' both its long-term corporate credit and
senior unsecured debt ratings on Japan-based capital goods and
diversified electronics company Toshiba Corp. S&P said, "We also
placed the ratings on CreditWatch with positive implications. We
have kept our 'C' short-term corporate credit and commercial
paper program ratings on Toshiba on CreditWatch with positive
implications."

The TCR-AP on Dec. 15, 2017, reported that Moody's Japan K.K.
affirmed Toshiba Corporation's Caa1 corporate family rating and
senior unsecured debt ratings, and its Ca subordinated debt
rating. Moody's has also changed the ratings outlook to stable
from negative. At the same time, Moody's has affirmed Toshiba's
commercial paper rating of Not Prime.



=================
S I N G A P O R E
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S I2I: Gets Additional 12-Month Extension to Exit SGX Watch List
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Jamie Lee at The Business Times reports that S i2i Limited on
Jan. 24 said it has been granted a 12-month extension by the
Singapore Exchange (SGX) to meet watch-list exit requirements. It
will now have until March 3, 2019, to get itself out of the
watchlist or risk delisting, the report says.

According to the report, the company said it is "fully committed"
to fulfilling the financial exit criteria, noting that for one
thing, its Indonesian business for the distribution of operator
products is "stable and growing".

S i2i was placed on SGX's watch list in 2015 for posting three
straight years of losses and having a market capitalisation that
fell below SGD40 million, BT relates. To get off the watch list,
it must record a pre-tax profit for the latest financial year and
maintain an average daily market capitalisation of at least SGD40
million over the last six months, according to BT.

The company recorded a consolidated pre-tax profit of about
SGD1.64 million for fiscal 2016, as compared to a consolidated
pre-tax profit of some SGD660,000 a year ago, BT discloses. It
also posted a consolidated pre-tax profit of about SGD1.2 million
for the nine-months period ended Sept 30, 2017.

S i2i's average daily market value, however, was about SGD38.8
million for the period between Aug. 3, 2017 and Dec. 14, 2017.
The company's share price has been in the range of SGD2.50 to
SGD3.10 for the last 60 days prior to the date of the extension
application, BT discloses.

The latest extension is the second 12-month reprieve granted to S
i2i since it landed on the watch list, the report notes.

Singapore-based S i2i Limited engages in rendering of
telecommunication services and research and development,
distribution of telecommunication handset, related products and
services, design and marketing of telecommunication software.



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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
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or solicitation to buy or sell any security of any kind.  It is
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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-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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