/raid1/www/Hosts/bankrupt/TCRAP_Public/180219.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

          Monday, February 19, 2018, Vol. 21, No. 035

                            Headlines


A U S T R A L I A

CENTRAL ASIA: First Creditors' Meeting Set for Feb. 26
CHELSAM JOINERY: First Creditors' Meeting Set for Feb. 23
GROUPED PROPERTY: First Creditors' Meeting Set for Feb. 26
PROTECT SERVICES: First Creditors' Meeting Set for Feb. 26
STAR PAINTERS: First Creditors' Meeting Set for Feb. 27


C H I N A

SUNRISE REAL ESTATE: Appoints New CEO and COO
YANZHOU COAL: Fitch Upgrades Long-Term IDR to B+; Outlook Stable


I N D I A

ALFARA'A INFRAPROJECTS: CRISIL Removes 'Not Cooperating' Rating
CLASSIC KNITS: Ind-Ra Migrates 'D' Rating to Non-Cooperating
GLOBAL PHARMA: CRISIL Reaffirms B+ Rating on INR3.72MM Loan
JANALAKSHMI FINANCIAL: ICRA Cuts Rating on INR5.38cr Loan to D
KALPA VRUKSHA: CRISIL Assigns B Rating to INR25MM Term Loan

KAUR SAIN: CRISIL Downgrades Rating on INR18MM Term Loan to D
KEWIN CHEMICALS: CRISIL Removes 'Not Cooperating' Rating
LIVINGSTONE JEWELLERY: ICRA Reaffirms B Rating on INR12.50cr Loan
MDA AGROCOT: CRISIL Lowers Rating on INR25MM Loan to D
MEKALA VENKATESWARA: CRISIL Assigns B+ Rating to INR3.65MM Loan

MODERN STAGE: CRISIL Moves B+ Rating to Not Cooperating Category
MULTISTONE GRANITO: ICRA Lowers Rating on INR32.40cr Loan to C+
NORTH EASTERN: ICRA Removes B+ Rating From Not Cooperating Cat.
NOVEL SUGAR: Ind-Ra Ups LT Issuer Rating to BB+
P.K.M PROJECTS: ICRA Reaffirms D Rating on INR40cr LT Loan

PATEL MICRON: ICRA Assigns B Rating to INR4.68cr Term Loan
PRECISE SEAMLESS: ICRA Assigns B+ Rating to INR26cr LT Loan
PRECISION INFOMATIC: Ind-Ra Gives BB+ LT Issuer Rating
PROTAC FOODS: ICRA Lowers Rating on INR18cr Term Loan to D
RADHA STEEL: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable

ROYALCARE SUPER: CRISIL Reaffirms B+ Rating on INR9.75MM Loan
SAGARSHREE HOSPITAL: Ind-Ra Migrates B+ Rating to Non-Cooperating
SERVOCONTROLS AEROSPACE: ICRA Ups Rating on INR9cr Loan to B
SHREE RAM: ICRA Keeps B+ Rating in Not Cooperating Category
SHRI MAHALAXMI: CRISIL Assigns B Rating to INR5.5MM Cash Loan

SHYAM TIMBER: ICRA Moves B+ Rating to Not Cooperating Category
SONALI AUTOS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
SREE GURUDEVA: Ind-Ra Puts BB- Issuer Rating to Non-Cooperating
SRITHIK ISPAT: Ind-Ra Migrates 'D' Rating to Non-Cooperating
UNITED BUILDERS: ICRA Assigns B Rating to INR15cr LT Loan

VIMAL MICRONS: ICRA Moves B+ Rating to Not Cooperating Category


I N D O N E S I A

LIPPO KARAWACI: Fitch Lowers Long-Term IDR to B+; Outlook Stable


M A L A Y S I A

TH HEAVY: On Track to Exit PN17 After Transfer of FPSO Job OK'd


P H I L I P P I N E S

RURAL BANK OF LORETO: Placed Under PDIC Receivership


S I N G A P O R E

EMAS OFFSHORE: Gets Court's Nod to Convene Creditors' Meeting
GOLDEN ENERGY: Fitch Assigns Final B+ Rating to US$150MM Notes


S O U T H  K O R E A

GM KOREA: Tension Escalates Over S. Korea Government Inspection


                            - - - - -


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



CENTRAL ASIA: First Creditors' Meeting Set for Feb. 26
------------------------------------------------------
A first meeting of the creditors in the proceedings of Central
Asia Resources Limited will be held at the offices of Palisade
Business Consulting, 22 Lindsay Street, in Perth WA, on Feb. 26,
2018, at 10:00 a.m.

Jack James and Paula Smith of Palisade Business were appointed as
administrators of Central Asia on Feb. 14, 2018.


CHELSAM JOINERY: First Creditors' Meeting Set for Feb. 23
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Chelsam
Joinery Pty Ltd will be held at the offices of Deloitte Financial
Advisory Pty Ltd, Eclipse Tower, Level 19, 60 Station Street, in
Parramatta, NSW, on Feb. 23, 2018, at 10:00 a.m.

Michael James Billingsley and Neil Robert Cussen of Deloitte
Financial were appointed as administrators of Chelsam Joinery on
Feb. 14, 2018.


GROUPED PROPERTY: First Creditors' Meeting Set for Feb. 26
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Grouped
Property Services Pty Ltd will be held at the offices of Condon
Associates Group, Level 6, 87 Marsden Street, in Parramatta, NSW,
on Feb. 26, 2018, at 11:00 a.m.

Schon Gregory Condon of Condon Associates Group was appointed as
administrator of Grouped Property on Feb. 14, 2018.


PROTECT SERVICES: First Creditors' Meeting Set for Feb. 26
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Protect
Services Australia Pty Ltd, trading as Omnidrone, will be held at
the offices of HLB Mann Judd (Insolvency WA), Level 3, 35 Outram
Street, in West Perth, WA, on Feb. 26, 2018 at 10:00 a.m.

Kimberley Stuart Wallman of HLB Mann Judd (Insolvency WA) was
appointed as administrators of Protect Services on Feb. 14, 2018.


STAR PAINTERS: First Creditors' Meeting Set for Feb. 27
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Star
Painters & Decorators Pty Ltd will be held at the offices of
Heard Phillips, Level 12, 50 Pirie Street, in Adelaide, SA, on
Feb. 27, 2018, at 10:00 a.m.

Mark Lieberenz and Andrew Heard of Heard Phillips were appointed
as administrators of Star Painters on Feb. 15, 2018.



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


SUNRISE REAL ESTATE: Appoints New CEO and COO
---------------------------------------------
Lin Chi-Jung notified Sunrise Real Estate Group, Inc.'s Board of
Directors that he would resign as the Company's chief executive
officer and president, effective as of Jan. 30, 2018. The Board
of Directors accepted his resignation. Mr. Lin will still serve
as the Chairman of the Company's Board of Directors.

Effective as of Jan. 30, 2018, the Company's Board of Directors
elected Mr. Pan Yujen as a new member of the Company's Board of
Directors, with a term of office expiring at the Company's next
annual meeting of stockholders and the election of a successor.
The Company's Board of Directors also approved the appointment of
Mr. Pan Yujen as the chief executive officer.

Mr. Pan joined the Company's subsidiary, Shanghai Xin Ji Yang
Real Estate Consultation Company in 2002. He subsequently became
the Chairman of the Board for two of the Company's subsidiaries,
Shanghai Xin Ji Yang Real Estate Consultation Company Limited and
Suzhou Xi Ji Yang Real Estate Consultation Company Limited in
2017, where he was also responsible for the operations of both
subsidiaries. He has also served as the president at the Taiwan
Compatriot Investment Enterprise Association of Suzhou since
2015, and the Taiwan Compatriot Investment Enterprise Association
of Suzhou Industrial Park since 2014. Mr. Pan received a Bachelor
of Arts degree in Electric Engineering from Fu Hsin Trade and
Arts School in Taiwan in 1977.

Mr. Pan's compensation for his services in connection with his
position as chief executive officer and director has not yet been
determined.

Effective as of Jan. 30, 2018, the Company's Board of Directors
approved the appointment of Mr. Bryan Lin as the chief operating
officer.

Mr. Lin has more than 15 years of experiences in the capital
markets. From 2008 to 2014, he served as the Company's investor
relations director, and subsequently became the Vice President of
Operations in 2011. Prior to his return to the Company in 2017,
Mr. Lin worked in the retail sector at Cushman & Wakefield, a
large commercial real estate services company, from 2014 to 2016.
Mr. Lin received a Bachelor of Arts degree in Economics from the
University of California, Los Angeles in 2001.

Mr. Lin's compensation for his services in connection with the
appointment as chief operating officer has not yet been
determined.

                    About Sunrise Real Estate

Headquartered in Shanghai, the People's Republic of China,
Sunrise Real Estate Group, Inc., and its subsidiaries' principal
activities are real estate development and property brokerage
services, including real estate marketing services, property
leasing services; and property management services in the
People's Republic of China.

Sunrise Real reported a net loss of US$6.72 million for the year
ended Dec. 31, 2015, compared to a net loss of US$5.21 million
for the year ended Dec. 31, 2014. The Company's balance sheet as
of Sept. 30, 2016, showed $132.42 million in total assets,
$123.71 million in total liabilities and $8.70 million in total
shareholders' equity.

RH, CPA, in Bayside, NY, issued a "going concern" opinion in its
report on the consolidated financial statements for the year
ended Dec. 31, 2015, noting that the Company has a working
capital deficiency, accumulated deficit from recurring net losses
for the current and prior years, and significant short-term debt
obligations currently in default or maturing in less than one
year. These conditions raise substantial doubt about its ability
to continue as a going concern.


YANZHOU COAL: Fitch Upgrades Long-Term IDR to B+; Outlook Stable
----------------------------------------------------------------
Fitch Ratings has upgraded Yanzhou Coal Mining Company Limited's
Long-Term Foreign-Currency Issuer Default Rating to 'B+' from
'B'. The Outlook is Stable. Fitch has assigned Yanzhou Coal a
senior unsecured rating of 'B+' with Recovery Rating of 'RR4'.
Fitch has also upgraded the rating on the USD1.1 billion dual-
tranche 5.73% notes due 2022 issued by subsidiary Yancoal
International Resources Development Co., Limited to 'B+' from
'B'. The Recovery Rating is 'RR4'. The notes are unconditionally
and irrevocably guaranteed by Yanzhou.

The upgrade was driven by Fitch's assessment of the consolidated
credit profile of Yanzhou's immediate parent, Yankuang Group.,
Ltd., under the Government-Related Entities Rating Criteria
released on Feb. 7, 2018. Fitch assessed Yankuang Group's
consolidated credit profile at 'B+' using a bottom-up approach
based on its standalone credit profile of 'CCC+' plus a three-
notch uplift reflecting potential support from its ultimate
parent, Shandong State-owned Assets Supervision and
Administration Commission (SASAC). Yanzhou's rating was then
equalised with that of Yankuang Group as Fitch assesses the
linkage between the two entities as strong, underpinned by solid
strategic and operational ties, as per Fitch's Parent and
Subsidiary Rating Linkage criteria.

KEY RATING DRIVERS

Parent's Strong State Linkage: Yankuang Group's linkage with
Shandong SASAC is reflected by its position as one of Shandong
province's two key provincial coal suppliers, second-largest
employer and fourth-largest domestic bond issuer. Fitch assesses
Yankuang Group's status, ownership and control as 'Strong.'
Yankuang Group is 70%-owned by Shandong SASAC, while the Shandong
Provincial Council for Social Security Fund owns the other 30%.
The Shandong provincial government effectively controls Yankuang
Group's board and key senior management and has a strong
influence over the group's major strategies and investment
decisions.

Fitch assesses Yankuang Group's support record as 'Moderate', as
government support has been limited. Support mainly included
annual subsidies of CNY200 million-400 million and zero-cost land
injections, with the group's financial profile kept at
persistently weak levels. Fitch assess the socio-political
implications from a default as weak, since most of Shandong's
coal demand is met by supply from other provinces; around two-
thirds of Yankuang Group's coal capacity is outside Shandong
province. The financial implications from a default are assessed
as 'Strong', since Yankuang Group is one of the province's
largest state-owned entities (SOE) and its fourth-largest
domestic bond issuer.

Strong Parent Subsidiary Linkage: Yanzhou is 52.9% owned by
Yankuang Group and holds most of the group's high-quality assets
as its sole listing platform. Yanzhou contributed 55% of the
group's coal production and 75% of its EBITDA in 2016. Close
linkages are further reflected in a high degree of overlap of key
board members and management between the two entities. In
addition, Yankuang Group guaranteed CNY10 billion of Yanzhou's
CNY16 billion in outstanding domestic bonds as of 2016.

Improving Cash Flow: Fitch expects Yanzhou's sales volume to
continue increasing in 2018 due to the contribution from its
newly acquired Coal & Allied mines as well as capacity ramp up in
new mines, including Shilawusu, Ordos, Zhuanlongwan, Yingpanhao
and Moolarben II. Yanzhou's cash flow has also recovered
meaningfully, with reported operating cash flow - as measured by
China GAAP before interest payments - swelling by 280% yoy to
CNY8.2 billion in 9M17, driven by higher coal prices and sales
volume.

Fitch forecasts Yanzhou's average selling price of self-mined
coal at CNY491 per tonne in 2017 (9M17: CNY486/tonne; 2016:
CNY392/tonne). The company's sales volume of self-mined coal
reached 52.2 million t in 9M17, up 24% yoy. Fitch expects China's
strong stance on supply-side reform to support coal prices at
reasonably strong levels, although the government may tolerate
some capacity release in 2018 as the coal price may have exceeded
its comfort level and pressured power generators' profitability.

Capex Likely to have Plateaued: Fitch believes Yanzhou's coal
mine capex is likely to have plateaued, as Yingpanhao in Ordos
and Wanfu in Heze are the only two major uncompleted mines.
However, management's financial discipline is yet unproven, as
strong coal prices and higher operating cash flow may incentivise
the company to expedite investment in its two coal-chemical
projects in Ordos and Yulin. Fitch expects capex to average
CNY8.3 billion in 2018-2020, slightly higher than the 2017
guidance of CNY7.7 billion, but to follow a downward trend. The
company is likely to take a cautious stance investing in its
financial segment.

Lower Leverage: Fitch expects Yanzhou's FFO adjusted net leverage
to improve to 5.4x at end-2017, from 7.8x at end-2016, and to
remain below 6.5x for the next three years, under Fitch's coal-
price deck assumptions. FFO interest coverage is likely to
increase to 3.5x in 2017, from 2.3x in 2016.

Acquisition Credit Positive: Yancoal Australia, Yanzhou's listed
subsidiary, completed the acquisition of Coal & Allied, an
Australian coal producer, in September 2017. Yanzhou paid a net
USD2.4 billion for Coal & Allied's 51.0% shares in the Hunter
Valley Operations coal mine, 84.5% in Warkworth and 80% in Mount
Thorley. Fitch estimates the three mines combined will add 515
million tonnes to Yancoal Australia's marketable reserves and 15
million tonnes to its sales volume. Yancoal Australia funded the
deal entirely by equity, including USD1.5 billion in equity from
minority shareholders, helping improve Yanzhou's credit profile.

If Yanzhou completes the announced CNY7 billion A-share placement
to fund its share of the equity injection into Yancoal Australia,
Fitch expects Yanzhou's FFO adjusted net leverage to decline to
5.3x by end-2018, from Fitch current forecast of 5.9x.

Weak Group Standalone Profile: Yankuang Group's consolidated
standalone credit profile is weaker than that of Yanzhou due to
its less profitable coal mines and other operations, including
coal chemicals, aluminium and trading, as well as a significant
debt burden. Yankuang Group's cash flow from operations has been
negative for the previous four years and it has high consolidated
financial leverage, with FFO adjusted net leverage at 12.1x at
end-2016. However, the weak financial profile is partly balanced
by a large operating scale as one of China's top-ten coal mining
groups and adequate liquidity profile from strong access to banks
and the domestic bond market as Shandong province's key
provincial SOE.

DERIVATION SUMMARY

Yanzhou's rating is equalised with Yankuang Group based on strong
linkage between the two entities as per Fitch's Parent and
Subsidiary Rating Linkage criteria. Yankuang Group's credit
profile incorporates a three-notch uplift due to the group's
strong linkage with Shandong SASAC as per Fitch's Government-
Related Entities Rating Criteria. Shandong SASAC owns 70% and
effectively controls Yankuang Group, which is one of the
province's key provincial SOEs as well as one of its largest
employers and domestic bond issuers. The standalone credit
profile of Yankuang Group is weaker than that of Yanzhou due to
the lower profitability of its other operations and significant
debt.

KEY ASSUMPTIONS

Fitch's Key Assumptions within Fitch Rating Case for the Issuer
- QHD 5500Kcal coal price to average CNY535 per tonne in 2018
   and CNY500/tonne in 2019 and 2020
- Unit coal production cost rebounding by 5% in 2017 then
   remaining flat
- Capex averaging at CNY8.3 billion in 2018-20 and following a
   downward trend
- Major new coal mines starting operation in 2017-2018

Fitch's key assumptions for bespoke recovery analysis include:
- Yanzhou would be considered as a going-concern in bankruptcy
   and would be reorganised rather than liquidated
- The going concern approach values Yanzhou at CNY59.4 billion
   based on a 30% discount to Fitch's estimated 2017 EBITDA of
   CNY15.2 billion and an enterprise value/EBITDA multiple of
   6.0x after a 10% administrative claim
- The recovery waterfall results in a 58% recovery estimate
   corresponding to a 'RR3' Recovery Rating for offshore senior
   unsecured debt. However, Yanzhou's Recovery Rating is capped
   at 'RR4' because China is subject to a soft cap of 'RR4' as
   it falls under the 'Group D' of countries in terms of
   creditor-friendliness, as per Fitch's Country-Specific
   Treatment of Recovery Ratings Criteria.

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Strengthening of linkages between Yankuang Group and Shandong
   province
- Improvement in Yankuang Group's standalone credit profile,
   including positive cash flow from operations on a sustained
   basis, provided strong linkages between Yanzhou and Yankuang
   Group remain intact

Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Weakened linkage between Yankuang Group and Shandong province
- Weakening of Yankuang Group's liquidity profile, provided
   strong linkages between Yanzhou and Yankuang Group remain
   intact

Yanzhou's standalone rating:
Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- FFO adjusted net leverage below 5.0x on a sustained basis
(end-
   2016: 7.7x)
- FFO interest coverage above 3.5x on a sustained basis
   (end-2016 2.3x)
- Neutral to positive free cash flow
- Evidence of proven capex discipline

Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- FFO adjusted net leverage above 6x for a sustained period
- FFO interest coverage below 2.5x for a sustained period
- Weakening liquidity profile

LIQUIDITY

Adequate Liquidity: Yanzhou's total debt maturing within one year
increased to CNY30.7 billion by end-2016 (end-2015: CNY23.9
billion) and readily available cash fell to CNY16.4 billion
(CNY20.2 billion). Total undrawn bank credit facilities also
shrunk to CNY40.6 billion, from CNY70.0 billion. However, Fitch
expects the company to continue to benefit from strong access to
domestic funding sources due to its large SOE status. FFO fixed-
charge coverage improved to 2.3x in 2016 (2017: 2.0x) as a result
of the coal-price rebound.



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


ALFARA'A INFRAPROJECTS: CRISIL Removes 'Not Cooperating' Rating
---------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating on Alfara'a Infraprojects
Private Limited (AIPL) to 'CRISIL D/CRISIL D/Issuer Not
Cooperating'. However, the management has subsequently started
sharing the information, necessary for a comprehensive rating
review. CRISIL is now migrating the ratings from 'CRISIL D/CRISIL
D/Issuer Not Cooperating' to 'CRISIL D/CRISIL D'.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Bank Guarantee       395.09       CRISIL D (Migrated from
                                     'CRISIL D' Issuer Not
                                     Cooperating)

   Bank Guarantee       419.50       CRISIL D (Migrated from
                                     'CRISIL D' Issuer Not
                                     Cooperating)

   Letter of Credit     140          CRISIL D (Migrated from
                                     'CRISIL D' Issuer Not
                                     Cooperating)

   Long Term Loan        35          CRISIL D (Migrated from
                                     'CRISIL D' Issuer Not
                                     Cooperating)

The rating reflects AIPL's weak liquidity marked by recent delays
in servicing of term debt, over-utilization of fund-based limit
that persisted for more than 30 days, and devolvement of letter
of credit, mainly due to a stretch in the working capital cycle.

Key Rating Drivers & Detailed Description

Weaknesses

* Delays in debt servicing and weak liquidity: AIPL's bank limits
have been over utilized in the recent past due to delay in
payment by customers against the orders executed by AIPL. This
has resulted in cash flow mismatches. AIPL has started to address
this by diversifying into execution of civil construction and
turnkey contracts for infrastructure development agencies, where
the execution and receivable cycle is expected to be faster and
which may result in an improvement in liquidity. A track record
of timely realization from the customers and continued timeliness
in debt payments will remain key rating sensitivity factors over
the medium term.

* Below-average financial risk profile: Financial risk profile is
marked by a moderate networth and high gearing of INR68.4 crore,
and 2.63 times as on March 31, 2017, mainly due to high reliance
on working capital debt. Debt protection metrics are average,
marked by interest coverage and net cash accrual to total debt
ratios of around 1.8 times and 12%, respectively, for fiscal
2017.

Strength

* Extensive experience of the promoters in the civil construction
industry: The key promoter, Dr Gangaramani co-founded Alfara'a
General Contracting Company, which has since evolved into the
Alfara'a Integrated Construction group, comprising 11 companies
in construction and allied sectors. His extensive experience,
strong reputation and established relationships with customers,
have helped the group build a healthy brand image, and scale up
operations.

* Strong order book provides healthy revenue visibility over the
medium term: AFIPL has huge order book of INR2512 crore as on
30.11.2017 to be executed over next two to three years which will
give medium term revenue visibility. AFIPL has currently bagged
order to construct 9 stations for Pune Metro Line 1 (Pimpri-
Chinchwad ' Swargate) and 8 stations for Pune Metro Line 2
(Ramwadi ' Vanaz), total order size of which is INR980 crore. It
also has bagged another order from Jawaharlal Nehru Port Trust
(JNPT) worth~Rs.440 crore.

AIPL, which was set up in 2011, undertakes civil construction
activities in India.The Alfara'a group has a long track record of
operations in the civil construction industry in the UAE, having
delivered projects both for private as well as government
sectors.


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

-- INR366.25 mil. Term loans (long-term) due on December 2017 to
March 2020 migrated to Non-Cooperating Category with IND D
(ISSUER NOT COOPERATING) rating;

-- INR741.00 mil. Fund-based working capital (Long-term)
migrated to Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating; and

-- INR20.00 mil. Non-fund-based working capital (Short-term)
migrated to Non-Cooperating Category with IND D (ISSUER NOT
COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 5, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2010, Tirupur-based Classic Knits India
manufactures and exports knitted garments.


GLOBAL PHARMA: CRISIL Reaffirms B+ Rating on INR3.72MM Loan
-----------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities
of Global Pharma Healthcare Private Limited (GPHPL) at 'CRISIL
B+/Stable/CRISIL A4'.

                         Amount
   Facilities           (INR Mln)   Ratings
   ----------           ---------   -------
   Export Packing Credit   3.72     CRISIL B+/Stable (Reaffirmed)

   Letter of Credit         .90     CRISIL A4 (Reaffirmed)

   Term Loan                .38     CRISIL B+/Stable (Reaffirmed)

CRISIL had earlier upgraded its long term rating of GPHPL's on
28th December 2017 to 'CRISIL B+/Stable' from 'CRISIL B/Stable',
while reaffirmed its short term rating at 'CRISIL A4'.

The upgrade reflected improved business risk profile, as
reflected in its increased revenue to INR38.3 crore in fiscal
2017 from INR27.8 crore in the previous year; while maintaining
its operating margin at 8.5%. Better operating performance led to
improved net cash accrual of INR1.9 crore in fiscal 2017 from
INR1.5 crore in fiscal 2016. Financial risk profile has also
improved, with gearing of 0.69 time in fiscal 2017 compared to
0.79 time in fiscal 2016. Debt protection metrics remained
comfortable, with interest coverage and net cash accrual to total
adjusted debt ratios of 3.36 times and 33%, respectively. CRISIL
believes that GPHPL will continue to maintain its improved
business profile, supported by its established clientele and
extensive product profile.

The ratings continue to reflect GPHPL's modest scale of
operations and its large working capital requirement. These
weaknesses are partially offset by the extensive experience of
its promoters in the pharmaceutical industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Despite year-on-year growth of 35%
in revenue (due to steady demand) to INR38.3 crore in fiscal
2017, scale remains small. Scale will remain modest over the
medium term.

* Working capital intensity in operations: GPHPL has large
working capital requirements, as reflected in gross current
assets of around 130 days as on March 31, 2017. This is primarily
due to the sizeable receivables of around 88 days.

Strength

* Extensive experience of promoters: Key promoter, Dr A R
Venkatesh, worked as a consultant in pharmaceutical exports for
seven years before setting up GPHPL in 2003. The company's
factory in Chennai ' it has another in Puducherry ' is current
Good Manufacturing Practice certified as per World Health
Organization guidelines.

Outlook: Stable

CRISIL believes GPHPL will continue to benefit over the medium
term from its promoters' extensive experience. The outlook may be
revised to 'Positive' if significant improvement in revenue while
maintaining its operating margin, leads to higher cash accrual.
The outlook may be revised to 'Negative' in case of lower-than-
expected revenue or deterioration in working capital requirement
or any large debt-funded capital expenditure weakens the
liquidity.

Established by Dr A R Venkatesh and his wife, Dr Juma Venkatesh,
in 2003, GPHPL manufactures and trades in pharmaceutical
formulations in the form of tablets, ointments, creams, and
syrups.


JANALAKSHMI FINANCIAL: ICRA Cuts Rating on INR5.38cr Loan to D
--------------------------------------------------------------
ICRA has downgraded the rating for PTCs issued under a
securitisation transaction originated by Janalakshmi Financial
Services Limited (JFSL). The transaction is backed by the Small
Group (SG) loan contracts offered by JFSL. The transaction
involved 'at Par' transfer of receivables to the trust. The PTCs
carried an eventual promise of principal payouts and monthly
promise of interest payouts. PTC Series A2 is subordinate to PTC
Series A1, and interest payments were promised to PTC Series A2
only after maturity of PTC Series A1.


                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Smith IFMR Capital 2016

  PTC Series A1           1.64      Rating downgraded from
                                    [ICRA]C+(SO) to [ICRA]D(SO)

  PTC Series A2           5.38      Rating downgraded from
                                    [ICRA]C-(SO) to [ICRA]D(SO)


Rationale

The rating downgrade reflects the inadequacy of the pool
collections and the credit enhancement available in the
transaction to meet the promised payouts to the PTC investors on
the scheduled maturity date. A summary of the performance of the
pool till January 2018 collection month (February 2018 payout)
has been tabulated below.

Key rating drivers

Credit Weaknesses

* Sustained weak collection performance leading to higher than
expected delinquency levels; pool collections together with the
available credit enhancement are insufficient to meet the
promised payout to the PTC investors on the maturity date.

Description of key rating drivers:

The collection performance of the underlying loans was healthy
till October 2016 collection month. However, post the
demonetisation event, the monthly collection level declined
significantly. Collection from overdue contracts has also been
poor. Due to the sustained weaker-than-expected pool performance,
there has been a shortfall in meeting the scheduled payouts to
the PTC investors even after the utilisation of the entire credit
enhancement available in the transaction.

Janalakshmi Financial Services Ltd (JFSL) is a Bangalore-based
NBFC-MFI catering to the financial needs of urban poor women
through the Joint Liability Mechanism. The company was founded in
2006 by Mr. Ramesh Ramanathan as Janalakshmi Social Services
(JSS), whose portfolio was taken over by JFSL in 2008. The

promoter shareholding continues to be in JSS (now called Jana
Urban Foundation or JUF); the corpus funds in JUF are used for
social activities.

As on November 30, 2017, JFSL had a portfolio of about INR9,158
crore. The company has a diversified presence across 18 states
and 2 union territories in India with the share of the top 3
states of Tamil Nadu, Karnataka and Maharashtra comprising of
about 49% of the overall portfolio as on November 30, 2017. JFSL
registered a high compounded growth of 110% over the last four
years ended FY2017. The company raised INR1,030 crore equity
during Apr-Nov 2017 from existing and new investors.
In FY2017, JFSL reported a net profit of INR170.0 crore on a
total managed asset base of INR15,729.8 crore as against a net
profit of INR160.3 crore on a total managed assets base of
INR13,345 crore during FY2016. During H1FY2018, JFSL reported a
loss of Rs.1,192 crore on a managed asset base of INR10,332
crore.

ICRA has rated twelve standalone JFSL transactions till date
backed by Small Group (SG) loans, Enterprise Financial Services
(EFS) loans, Nano loans and Jana Kisan (JK) loans. Out of these,
four transactions have matured.


KALPA VRUKSHA: CRISIL Assigns B Rating to INR25MM Term Loan
-----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank facility of Kalpa Vruksha Plantations Private
Limited (KVPL).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Rupee Term Loan         25       CRISIL B/Stable (Assigned)

The rating reflects the company's exposure to risks related to
implementation of the ongoing commercial project, its occupancy
and cyclicality inherent in the real estate sector. These
weaknesses are mitigated by the extensive experience of the
promoters in the real estate industry and comfortable debt
maturity profile.

Key Rating Drivers & Detailed Description

Weaknesses

* Exposure to implementation risks: KVPL is setting up a
commercial building in Pune, which is in the initial stage with
only 5% of construction completed till December 2017, thus being
exposed to high implementation risk. The timely implementation of
the project with no major cost overruns will remain a key
sensitivity factor.

* Exposure to cyclicality in the real estate industry: India's
real estate industry is marked by cyclicality, opaque
transactions, and intense fragmentation because of the presence
of a large number of regional players.

Strengths

* Extensive experience of the promoters: Benefits from the
promoters' two-decade long experience in the industry and the
company's established track record of implementing residential
and commercial projects in and around Pune, will continue to
support business.

* Long moratorium, and continuous funding support from promoters:
Term debt repayment is scheduled to begin from January 2020,
about one year post scheduled completion of the project. Further,
need-based funding support from promoters is expected to
continue.

Outlook: Stable

CRISIL believes KVPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if timely completion of the project and its healthy
occupancy lead to higher cash accruals. The outlook may be
revised to 'Negative' if time and cost overruns, low liquidity,
arising from delay in receiving customer advances, exert pressure
on revenue and profitability, and weaken debt servicing ability.

Incorporated in 1987, Pune, Maharashtra based KVPL is a special
purpose vehicle that undertakes real estate development. Part of
the SOBA group, the company is currently undertaking commercial
project - Seedtree Business Center in Shivaji Nagar, Pune.


KAUR SAIN: CRISIL Downgrades Rating on INR18MM Term Loan to D
-------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities
of Kaur Sain Spinning Mills to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee          1        CRISIL D (Downgraded from
                                    'CRISIL A4')

   Cash Credit            14        CRISIL D (Downgraded from
                                    'CRISIL B+')

   Letter of Credit        4        CRISIL D (Downgraded from
                                    'CRISIL A4')

   Term Loan              18        CRISIL D (Downgraded from
                                    'CRISIL B+')

The rating reflects delays in repayment of term debt obligations
and overdrawn cash credit limits for more than 30 days. The
company earlier had misrepresented facts about timely repayment
of debt obligations. The rating weakness is partially offset by
the extensive experience of KSSM's partners in the industry.

Key Rating Drivers & Detailed Description

Weakness

* Working capital intensity in operations leading to stretched
liquidity: Operations are working capital intensive, as reflected
in gross current assets of 179 days as on March 31, 2017, led by
receivables of around 130 days, as the firm has to offer extended
credit period to its customers in an intensely competitive
scenario. This has led to stretched liquidity and has resulted in
instances of overdrawal in the CC account and delays in repayment
of term loan. There was overdrawn in the cash credit account for
more than 30 days, which was earlier been misrepresented by the
client.

Strengths

* Partners' industry experience: KSM has been present in the
textile industry since 1999, and its promoters have industry
experience of around three decades. Supported by its promoters'
industry experience, the firm has established strong relations
with its suppliers and customers, as reflected in the repeat
orders that it receives from some of its customers.

KSM was set up in 1999 as a partnership firm by Mr. Sushil Kumar
Mittal and his family members. It manufactures POY at its plant
in Ludhiana (Punjab). It has yarn texturing capacity of 20 tonnes
per day. In the same plant, the firm has a knitting unit with
5MT/day capacity. In the second unit, the firm has yarn dyeing
facility with capacity of 5 ton/day.


KEWIN CHEMICALS: CRISIL Removes 'Not Cooperating' Rating
--------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with
Securities and Exchange Board of India guidelines, had migrated
the ratings on the bank facilities of Kewin Chemicals Private
Limited (KCPL) to 'CRISIL B+/Stable/CRISIL A4/Issuer Not
Cooperating'. However, management subsequently started sharing
information necessary for carrying out a comprehensive rating
review. Consequently, CRISIL is migrating the rating on the bank
facilities from 'CRISIL B+/Stable/CRISIL A4/Issuer Not
Cooperating' to 'CRISIL B+/Stable/CRISIL A4'

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Cash Credit             1.5       CRISIL B+/Stable (Migrated
                                     from 'CRISIL B+/Stable'
                                     Issuer Not Cooperating)

   Foreign Discounting     7.0       CRISIL A4 (Migrated from
   Bill Purchase                     'CRISIL A4' Issuer Not
                                     Cooperating)

   Proposed Long Term      0.4       CRISIL B+/Stable (Migrated
   Bank Loan Facility                from 'CRISIL B+/Stable'
                                     Issuer Not Cooperating)

The ratings continue to reflect the modest scale of operations
and weak financial risk profile. However, these rating weaknesses
are partially offset by extensive experience of the promoters.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations amidst intense competition: Intense
competition in the chemical industry, has kept the scale of
operations modest, with turnover of INR26.75 crore in fiscal
2017. Revenue is expected to be in the range of INR35-40 crore in
the medium term.

* Weak financial risk profile: Financial risk profile is marked
by modest networth, high leverage and moderate debt protection
metrics. Networth was low at INR2.22 crore as on March 31, 2017,
and is expected to remain at INR2.5-3.00 crore in the medium
term. Capital structure remains highly leveraged, with gearing of
3.01 times and total outside liabilities to tangible networth
ratio of 4.67 times as on same date. Debt protection metrics
remains moderate, with interest coverage ratio of 2 times for
fiscal 2017.

Strengths

* Extensive experience of the promoters: The two decade-long
experience of the promoters, their keen grasp over local market
dynamics, and their established relationships with customers,
will continue to support the business risk profile.

Outlook: Stable

CRISIL believes KCPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if gradual increase in revenue and profitability,
leads to higher cash accrual, and strengthens capital structure.
The outlook may be revised to 'Negative' if low cash accrual,
sizable working capital requirement, or large debt-funded capex
weakens the financial risk profile, especially liquidity.

KCPL was set up in Ahmedabad in 1999, by the promoters, Mr.
Devang Shah and Mr. Mitesh Shah. The company manufactures and
trades in chemical intermediates, dyes and pigments.


LIVINGSTONE JEWELLERY: ICRA Reaffirms B Rating on INR12.50cr Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B to the
INR12.50 crore long-term fund-based and INR2.00 crore long-term
unallocated facilities of Livingstone Jewellery Private Limited.
The outlook on the long-term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund based-Long
  Term                  12.50        [ICRA]B (Stable); Reaffirmed

  Fund based-
  Unallocated            2.00        [ICRA]B (Stable); Reaffirmed


Rationale
The rating reaffirmation takes into account the long-standing
experience of the promoters along with operating track record of
the company of more than three decades in the gems and jewellery
business which has resulted in established customer and supplier
base, and the presence of the Livingstones group across value
chain making it an integrated player in the gems and jewellery
segment.

However, the rating is constrained by the company's weak
financial position as reflected by small scale of operations,
modest profitability, weak debt coverage indicators and high
working capital intensity of operations due to high inventory
holding period and receivable levels. The rating also considers
the vulnerability of LJPL's profitability to fluctuations in raw
material prices, and exposure to high competitive intensity in
the jewellery industry which limits the pricing power.

Outlook: Stable

ICRA believes Livingstones Jewellery Private Limited will
continue to benefit from the extensive experience of the
promoters in the jewellery business, its established customer and
supplier base, and the presence of the group across the value
chain. The outlook may be revised to 'Positive' if substantial
growth in revenue and profitability, and better working capital
management, strengthens the financial risk profile. The outlook
may be revised to 'Negative' if cash accrual is lower than
expected or stretch in the working capital cycle, weakens
liquidity.

Key rating drivers

Credit strengths

Long standing experience of promoters and established track
record of the company in the gems and jewellery industry: LJPL
was incorporated in 1989 for manufacturing and selling of diamond
studded gold jewellery. It is promoted by Mr. Sandip Kothari who
has an extensive experience of close to three decades in the gems
and jewellery business. The company makes various rings,
earrings, pendants, bracelets and necklaces which are
manufactured using polished diamonds, precious and other semi-
precious stones set in gold.

Presence of group across gems and jewellery value chain;
established relationship with customers and suppliers: The
Livingstone group has presence across gems and jewellery value
chain. The group carries out processing of raw diamonds to
produce polished diamonds through Livingstones and manufacturing
of diamond studded jewellery through Livingstone Jewellery
Private Limited. LJPL has an established customer base, mainly in
export markets of Belgium, Hongkong and USA while it also has
sourcing arrangement for supply of cut and polished diamonds with
its group company, Livingstones and a Belgium based supplier.

Credit challenges

Weak financial profile characterised by small scale, modest
profitability and weak debt coverage indicators: LJPL is a small
player in the fragmented gems and jewellery industry. After
witnessing stagnant revenues for four years, the company reported
~12% y-o-y revenue growth in FY2017; however, at absolute level
the revenues continued to remain small at INR30.88 crore. The
operating profitability of the company remains modest due to
limited value addition and has fluctuated in the last five
fiscals because of volatility in gold prices. The operating
margins of the company increased to 6.10% in FY2017 from 3.28% in
FY2016 due to lower employee costs but the same have again
declined to 5.08% in 9M FY2018 due to higher raw material and
overhead costs. The company's return indicators as well as debt
coverage indicators have remained weak owing to low profitability
as reflected by RoCE of 9.71%, interest coverage of 1.59 times
and NCA/Total Debt of 7% in FY2017 as compared to RoCE of 5.06%,
interest coverage of 0.71 times and NCA/Total debt of 1% in
FY2016. For 9M FY2018, the company reported interest coverage of
1.50 times and NCA/TD of 7%.

High working capital intensity resulting from high inventory and
high receivables which impacts liquidity: The working capital
intensity of the company has remained on a higher side over the
past few years and stood at 63% in FY2017 as compared to 71% in
FY2016. The same is because of high receivables and high
inventory levels. The company offers a credit period of 90-120
days to its customers and makes payments within 30 days to its
suppliers. The inventory levels generally remain on a higher side
given the high variety of jewellery designs manufactured by the
company, and to fulfil any sizeable orders on immediate basis.
For 9M FY2018, the working capital intensity stood at 62%.

Intense competition in the gems and jewellery industry in India:
The company faces stiff competition from large organised and
well-established chains as well as small unorganised players
supplying gold and diamond studded jewellery, which limits its
pricing flexibility and bargaining power with customers, thereby
putting pressure on its revenues and margins.

Vulnerability of profitability to adverse fluctuation in raw
material prices: The operating profit margins of the company are
largely affected by the gold and diamond price fluctuations which
in turn affect the sales realisations of the finished goods. Any
adverse movement in the price of raw materials could have an
adverse impact on the company's margins, considering the limited
ability to pass on the price hike owing to highly competitive
nature of the industry.

Livingstones Jewellery Private Limited (LJPL) was incorporated in
1989 by Mr. Sandip Kothari and Mr. Pankaj Kothari. The company is
engaged in the manufacturing and selling of diamond studded gold
jewellery. It has a retail showroom at Opera House in Mumbai.
LJPL, part of The Livingstones group, is a closely held entity
with 100% ownership of the promoter family who are actively
involved in its day-to-day operations. The Livingstones group has
more than three decades of experience in the Gems and Jewellery
business and has over the years grown into a vertically
integrated business establishment ranging from supply of cut and
polished diamonds and manufacturing of diamond studded gold
jewellery. The manufacture of gold jewelry is carried out by its
group concern namely, Livingstones Jewellery Private Limited.

In FY2017, the company reported a net profit of INR0.63 crore on
an operating income of INR30.88 crore, as compared to a net
profit of INR0.06 crore on an operating income of INR27.50 crore
in the previous year. In 9M FY2018, the company has reported
operating income of INR20.67 crore and profit after tax INR0.46
crore.


MDA AGROCOT: CRISIL Lowers Rating on INR25MM Loan to D
------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities
of MDA Agrocot Private Limited (MDA Agro) to 'CRISIL D' from
'CRISIL B+/Stable'.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Cash Credit             7         CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

   Foreign Bill           25         CRISIL D (Downgraded from
   Discounting                       'CRISIL B+/Stable')

The downgrade reflects delays beyond 30 days in repayment of
packing credit facility on account of cancellation export orders
and stretch in inventory days.

Key Rating Drivers & Detailed Description

Weaknesses:

* Large working capital requirements: Operations are working
capital intensive on account of high debtor and inventory days.
There has been instances of cancellation of orders from clients
leading higher inventory level. The liquidity profile of the
company is weak on account of high working capital requirements
leading to delay in repayment in working capital limits.

* Modest scale of operations: Scale of operations for fiscal 2018
is expected to be around INR20 crores and expected to remain
modest over medium term.

Strengths:

* Extensive experience of promoters: The company is a part of the
Narendra group, which deals in oil and dal mills, cold storage,
textiles, and warehousing. Presence of over a decade in the agro
commodities trading industry through associate concerns has
enabled the promoters to gain industry insight. The experience of
the promoters may support the company in improving their business
profile.

Established by Mr. Aditya Bhoot and Mr. Darshan Bhoot in December
2011 as Deegee Dehydration Pvt Ltd and renamed in November 2014,
MAPL trades in and exports cotton yarn, rice, wheat, and corn.
The company is based in Amravati, Maharashtra.


MEKALA VENKATESWARA: CRISIL Assigns B+ Rating to INR3.65MM Loan
---------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Mekala Venkateswara Rao (MVR).

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Term Loan              1.35       CRISIL B+/Stable (Assigned)

   Proposed Long Term
   Bank Loan Facility     3.65       CRISIL B+/Stable (Assigned)

   Bank Guarantee         1          CRISIL A4 (Assigned)

   Overdraft              4          CRISIL B+/Stable (Assigned)

The ratings reflect MVR's modest scale of operations in the
fragmented industry, and a below-average financial risk profile.
These weaknesses are partially offset by the experience of the
proprietor.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and intense competition: Scale of
operations remained small, with operating income expected below
INR25 crore in fiscal 2018. Intense competition may continue to
restrict the scalability of operations and limit the pricing
power with suppliers and customers, thereby constraining
profitability.

* Below-average financial risk profile: Networth was modest at
INR7.9 crore as on March 31, 2017. Moreover, investment in
affiliate (Rs 1.5 crore) and loans and advances to family members
(Rs 5.8 crore) constrain the financial risk profile

Strength

* Experience of proprietor: Benefits derived from the
proprietor's experience of three decades and, healthy relations
with customers and suppliers, should continue to support the
business.

Outlook: Stable

CRISIL believes MVR will continue to benefit over the medium term
from the experience of the proprietor. The outlook may be revised
to 'Positive' if the financial risk profile improves
significantly due to sizeable capital infusion or recovery of
advances extended to relatives. Conversely, the outlook may be
revised to 'Negative' if a significant stretch in the
receivables, or any large, debt-funded capital expenditure
weakens the financial risk profile and liquidity.

MVR was set up in 1993 at Nellore by the proprietor, Mr
Venkateswara Rao.  The firm provides handling (loading and
unloading), transportation, and logistic services (by road). It
mainly caters to the fertilisers industry and also transports
coal. The firm has warehouses of about 25,000 square ft.


MODERN STAGE: CRISIL Moves B+ Rating to Not Cooperating Category
----------------------------------------------------------------
Due to inadequate information and in line with Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated
the rating on the long-term bank facility of Modern Stage
Services Private Limited (MSSPL) to 'CRISIL B+/Stable/Issuer Not
Cooperating'.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Term Loan               8         CRISIL B+/Stable (Migrated
                                     from 'CRISIL B+/Stable'
                                      Issuer Not Cooperating)

However, management has started sharing information necessary for
a comprehensive review of the rating. Consequently, CRISIL is
migrating the rating from 'CRISIL B+/Stable/Issuer Not
Cooperating' to 'CRISIL B+/Stable'.

The rating reflects MSSPL's modest scale and working capital-
intensive operations, and weak financial risk profile. These
weaknesses are partially offset by extensive experience in the
stage lighting and audio industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Working capital-intensive operations: Gross current assets were
267 days as on March 31, 2017, and are expected at a similar
level as of March 31 2018 owing to stretched receivables of 244
days as on March 31 2017. Payment from clients is received in 3-9
months.

* Modest scale of operations: Despite being in business for more
than 10 years, the revenue was INR28.72 crore in fiscal 2017 and
is expected to witness moderate growth over the medium term.

* Weak financial risk profile: Networth was small at INR9.44
crore and total outside liabilities to adjusted networth (TOLANW)
ratio high at 4.96 times, as on March 31, 2017. The TOLANW ratio
was weak due to high payables to fund working capital
requirement. However, debt protection metrics were above average,
with adjusted interest coverage and net cash accrual to adjusted
debt ratios of 5.37 times and 0.56 time, respectively, for fiscal
2017. Ratios are expected to be in a similar range over the
medium term.

Strengths

* Extensive experience in the stage lighting and audio industry:
The company has been in the stage lighting and sound equipment
renting space for more than 10 years, during which it has
gathered sound technical know-how. It has provided end-to-end
lighting solutions for more than 1000 stage shows and events,
thereby establishing a strong relationship with customers and
suppliers.

Outlook: Stable

CRISIL believes MSSPL will continue to benefit over the medium
term from its established position in the stage lighting and
sound equipment renting business. The outlook may be revised to
'Positive' if capital structure and working capital cycle
improve. The outlook may be revised to 'Negative' if stretch in
working capital cycle or large debt-funded capital expenditure
further weakens financial risk profile, particularly liquidity.

Incorporated in 2006 and promoted by Mr Varinder Kumar Wadhwa and
Mr Davinder Kumar Wadhwa, MSSPL rents out stage lights and video
and audio systems for shows, live concerts, and festivals across
India. It is based in New Delhi.


MULTISTONE GRANITO: ICRA Lowers Rating on INR32.40cr Loan to C+
--------------------------------------------------------------
ICRA has downgraded the long-term rating from [ICRA]B to [ICRA]C+
on the INR32.40-crore1 term loans and the INR12.00-crore cash
credit facility of Multistone Granito (P) Limited. ICRA has
reaffirmed the short-term rating of [ICRA]A4 to the INR4.00-crore
non-fund based bank guarantee and the INR0.42 crore non-fund
based credit exposure limit of MGPL.

                       Amount
  Facilities         (INR crore)      Ratings
  ----------         -----------      -------
  Fund-based Term
  Loan                    32.40       [ICRA]C+; Downgraded

  Fund-based Working
  Capital Facilities      12.00       [ICRA]C+; Downgraded

  Non-fund Based Bank
  Guarantee                4.00       [ICRA]A4; Reaffirmed

  Non-fund Based Credit
  Exposure Limit           0.42       [ICRA]A4; Reaffirmed

Rationale

The downgrade in the long-term rating takes into account the
delay in project stabilisation owing to disruption of operations
for three months, with the plant being destroyed due to heavy
rains and wind. This had led to an inability to achieve the
estimated operating parameters in terms of scale and
profitability. The ratings remain constrained by the company's
small scale of operations, operating and financial losses, its
high gearing and weak debt coverage indicators during 8M.FY2018,
which coupled with significant debt repayments keep the credit
profile constrained in the near term. Further, the ratings also
factor in the highly fragmented nature of the tiles industry,
which results in intense competition. ICRA notes the cyclical
nature of the real estate industry, the main consuming sector,
and the exposure of the company's profitability to volatility in
raw material and gas prices. MGPL's vulnerability to adverse
foreign exchange fluctuations are other rating considerations.
The ratings, however, continue to favourably factor in the
experience of the partners in the ceramic industry, and the
benefits derived from its established Group concerns in terms of
marketing and distribution. The locational advantage of MGPL for
raw material procurement from its presence in Morbi (Gujarat)
works in favour of its credit profile.

Key rating drivers

Credit strengths

Extensive experience of the management in the ceramic industry:
The promoters have an extensive experience of close to a decade
in the ceramic industry vide their association with other
companies in the ceramic industry.

Proximity to manufacturing hub: The manufacturing facility of the
company is located in the ceramic tiles manufacturing hub of
Morbi (Gujarat), which provides it with easy access to quality
raw materials like body clay, feldspar and glazed frit from
Gujarat and Rajasthan.

Credit challenges

Delay in stabilisation of operations and resultantly weak
financial risk profile: The company's operations were disrupted
for three months with the plant being destroyed due to heavy
rains and wind leading to delay in stabilisation of operations.
The financial profile remains weak as reflected by its small
scale of operations (operating income of INR14.23 crore in 8M
FY2018), operating and financial losses (OPBDITA of -Rs. 3.52
crore and PBDT of -Rs. 6.64 crore), and average coverage
indicators (Total Debt/OPBDITA at -10.06 times and OPBDITA/I&F at
-1.13 times).

Margins subject to pressure from intense competition and
cyclicality of the real estate industry: The tile manufacturing
industry remains highly fragmented with competition from the
organised and unorganised segments, apart from imports. The large
number of players in the unorganised segment, with most of them
located in Gujarat and operating on low cost structures, creates
a pressure on prices. Moreover, the demand for tiles remains
exposed to the cyclicality in the real estate sector, which is at
present going through a downward trend.
Profitability susceptible to volatility in raw material and fuel
prices: Despite the locational advantage for raw material
procurement, the company has limited control over the prices of
other key inputs such as natural gas/coal, and thus its margins
remain exposed to any adverse movement in gas/coal prices.

Incorporated in May 2016, Multistone Granito (P) Limited (MGPL)
commenced commercial production from April 2018 with its product
profile comprising double charged vitrified tiles of 600X600 mm
and 800X800 mm. MGPL's manufacturing unit is located at Wankaner,
Morbi, the ceramic tile manufacturing hub of Gujarat. MGPL is
equipped to manufacture 73,800 metric tonnes (MT) of tiles per
annum. In FY2018 (eight months of operations), on a provisional
basis, it reported a net loss before depreciation and taxation of
INR6.64 crore on an operating income of INR14.23 crore.


NORTH EASTERN: ICRA Removes B+ Rating From Not Cooperating Cat.
---------------------------------------------------------------
ICRA has removed its earlier rating of [ICRA]B+ (Stable) from the
'ISSUER NOT COOPERATING' category as North Eastern Karnataka Road
Transport Corporation (NEKRTC) has now submitted its 'No Default
Statement' ("NDS") which validates that the entity is regular in
meeting its debt servicing obligations. The entity's rating was
moved to the 'ISSUER NOT COOPERATING' category in November 2017.
The current rating derives comfort from the importance of NEKRTC
to the Government of Karnataka (GoK), with the corporation
playing a critical role in providing transport services in the
north east districts of the state, and the financial flexibility
enjoyed by it for being a state-owned entity with regular capital
support received from the GoK.


NOVEL SUGAR: Ind-Ra Ups LT Issuer Rating to BB+
-----------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Novel Sugar
Limited's (NSL) Long-Term Issuer Rating to 'IND BB+' from 'IND BB
(ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-
wise rating actions are given below:

* INR170 mil. (increased from INR47.5 million) mil. fund-based
working capital limit

   -- Long-term rating is upgraded to IND BB+/Stable, and

   -- Short-term rating is affirmed at IND A4+

KEY RATING DRIVERS

The upgrade reflects a sustained improvement in NSL's scale of
operations leading to an improvement in its credit metrics. In
FY17, revenue grew to INR736.46 million (FY16: INR625.02 million,
FY15: INR527.18), driven by an increase in sugar demand. As of
December 2017, the company booked revenue of INR470 million and
had an order book of INR400 million, to be executed by 31 March
2018. Management expects to achieve revenue of INR1,000 million
in FY18. However, operating margins continued to decline to 4.82%
in FY17 (FY16: 5.17%, FY15: 6.23%) due to volatility in raw
material (sugarcane) costs and depressed sugar prices.

Despite this, interest coverage (operating EBITDAR/gross interest
expense) improved to 6.11x in FY17 (FY16: 4.63x, FY15: 4.89x) and
net leverage (adjusted net debt/operating EBITDAR) to 1.17x
(1.60x, 1.99x) owing to the increase in revenue.

The ratings remain constrained by NSL's tight liquidity position
as reflected by around 97% average utilization of its fund-based
limits during the 12 months ended January 2018.

However, the ratings remain supported by the promoter's 15 years
of experience in the sugar business.

RATING SENSITIVITIES

Positive: A sustained improvement in the top line while
maintaining/improving the operating profitability, credit metrics
and liquidity profile will be positive for the ratings.

Negative: A sustained decline in the revenue, an increase in
margin pressures or deterioration in the credit metrics and
liquidity profile will be negative for the ratings.

COMPANY PROFILE

Established in 2003 by Yogesh Kumar Agarwal and Anupam Singhal,
NSL manufactures khandsari sugar. The company's manufacturing
facility, located in Pilibhit, Uttar Pradesh, has a daily sugar
crushing capacity of 1,500 tonnes.


P.K.M PROJECTS: ICRA Reaffirms D Rating on INR40cr LT Loan
----------------------------------------------------------
ICRA has reaffirmed the long-term rating at [ICRA]D on the
INR40.00-crore fund-based limits of P.K.M Projects Private
Limited (PKM).

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Long-term Fund
  Based-Term loan        40.00       [ICRA]D; Reaffirmed

Rationale

The rating reaffirmation factors in the continued delays in debt
servicing by PKM on the loans availed for acquisition of a hotel
property in Goa. The company has invested almost the entire
estimated funds; however, the hotel is yet to commence
operations. Further, PKM is yet to tie up with an operations and
management (O&M) partner, resulting in delay in the commencement
of its operations. The company will remain dependent on promoter
support for servicing its debt obligations.

Going forward, the timely debt servicing will be the key
monitorable.

Key rating drivers

Credit strengths

Favourable location of the project: The hotel property is located
at a favorable location, which is 200 meters from the beachfront,
in the prime entertainment hub of North Goa's Candolim beach.

Credit weaknesses

Delay in debt servicing: The company continues to delay its debt
servicing as the commercial operations of the hotel are yet to
start. The company will remain dependent on promoter support for
servicing its debt obligations.

Delay in commencement of operations: The company has invested
almost the entire estimated funds; however, the hotel is yet to
commence operations. Further, PKM is yet to tie up with an
operations and management (O&M) partner, resulting in delay in
the commencement of its operations.

PKM was incorporated in December 2006 and is a part of the Mahesh
Mehta Group of companies, which has interests in hotel business,
real estate business and is also into manufacturing of Kattha
Products. The company had acquired one hotel property in Goa,
which is yet to commence operations.


PATEL MICRON: ICRA Assigns B Rating to INR4.68cr Term Loan
----------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to the INR6.68-
crore fund-based bank facilities of Patel Micron LLP and a short-
term rating of [ICRA]A4 to the INR0.50- crore non-fund based bank
facilities of Patel Micron. The outlook on the long-term rating
is Stable.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund-based-Term
  Loan                   4.68       [ICRA]B (Stable); Assigned

  Fund-based-Working
  Capital Facilities     2.00       [ICRA]B (Stable); Assigned

  Non-fund based-
  Bank Guarantee         0.50       [ICRA]A4; Assigned

Rationale

The assigned ratings favorably factor in the experience of the
key promoters in the ceramic industry and the location advantage
enjoyed by the firm, which ensures easy access to Morbi-based
customers.

The ratings, however, remain constrained by the small envisaged
scale of operations and risk associated with stabilisation of the
plant as per the expected operating parameters. Furthermore, the
assigned rating also takes into account the firm's financial
profile, which is expected to remain weak in the near to medium
term, given the debt-funded nature of the project and the
impending debt repayments. The rating is also constrained by the
intense competition and vulnerability of its profitability to the
adverse movements of key raw material prices.

Outlook: Stable

ICRA believes that Patel Micron will benefit from the experience
of its promoters and the customer network of its associate
concerns. The outlook may be revised to Positive if timely
implementation of project and stabilisation of operations leads
to higher cash accrual during the initial phase. The outlook may
be revised to Negative if delayed project implementation, and/or
slower ramp-up in sales and accrual, or sizeable working capital
requirement, weakens the financial risk profile, especially
liquidity.

Key rating drivers

Credit strengths

Experience of promoters in the ceramic industry: The key
promoters, Mr. Jayprakash Kaila and Mr. Pravinbhai Kaila, have an
experience of over a decade in the ceramic industry through their
association with other entities in the same industry. Moreover,
the firm will also derive support from the customer network of
its associate firms.

Favourable location of the unit: The manufacturing facility of
the firm is located in the ceramic industry hub of Morbi
(Gujarat), providing easy access to prospective
clients/customers.

Credit challenges

Risks associated with stabilisation and successful scale up of
operations: Being in a nascent stage, with the unit yet to become
fully operational (expected from February 2018), the firm remains
exposed to the risks associated with stabilisation and successful
scale up of operations of the plant, as per expected parameters.
The timely commissioning of operations without any significant
cost over-runs would remain a key rating sensitivity.

Weak financial risk profile: The financial risk profile of the
firm remains weak, with a small net-worth base and high estimated
gearing level of ~3.00 times as on March 31, 2018. Further, the
moderate profitability in the initial phase and impending debt
repayments, will result in a stretched liquidity position in the
near term.

Intense competition: The competitive intensity of the industry
remains high, with low capital intensity and limited entry
barriers. The large number of players in the unorganised segment
with most of them based out of Gujarat and operating with low-
cost structures creates a pressure on the pricing.

Profitability to remain susceptible to volatility in raw material
prices: Raw material price is a major component determining the
cost competitiveness of the industry. The firm can, however,
exercise little control over the prices of raw materials. Thus,
the margins are expected to remain exposed to movement in raw
material prices and its ability to pass on any upward movement to
its customers.

Patel Micron LLP was incorporated in October 2016 by Mr.
Jayprakash Kaila along with 20 other partners. The key promoters,
namely Mr. Jayprakash Kaila and Mr. Pravinbhai Kaila, have
reasonable experience in the ceramic industry, including in
trading of ceramic raw materials. The firm plans to manufacture
sodium oxide (Na2O) feldspar and potassium oxide (K2O) feldspar
powder that are used in manufacturing vitrified tiles. The firm's
facility is located at Morbi, Gujarat, with an installed
manufacturing capacity of 90,000 tonnes per annum.


PRECISE SEAMLESS: ICRA Assigns B+ Rating to INR26cr LT Loan
-----------------------------------------------------------
ICRA has assigned long-term rating of [ICRA]B+ and short-term
rating of [ICRA]A4 to the INR34.00-crore bank facilities of
Precise Seamless Apparels Private Limited. The outlook on the
long-term rating is Stable.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Long-term fund-
  based limit             26.00      [ICRA]B+ (Stable); Assigned

  Short-term non-
  fund-based limit         8.00      [ICRA]A4; Assigned

Rationale

The assigned ratings favorably factor in PSAPL's promoters
experience in the seamless garment export business and its
established relationship with overseas clients. The ratings are
supported by modest order position which provides revenue
visibility in the near term. However, the ratings are constrained
by the company's high client concentration risk which exposes the
PSAPL to revenue fluctuations and its susceptibility to
volatility in foreign exchange rates. Further, the ratings take
into account vulnerability of its profitability to adverse
fluctuation in prices of key raw materials as large part of it is
imported and limited financial flexibility due to low current
ratio.

Going forward, the company's ability to retain its key clients,
diversify its client base, scale up operations along with
efficiently managing profitability margins and working capital
requirement will be the key rating sensitivity.

Outlook: Stable

ICRA believes that PSAPL will continue to benefit from the
extensive experience of its promoters and maintain its financial
profile. The outlook may be revised to Positive if substantial
growth in revenue and profitability, and better working-capital
management, strengthens the financial risk profile. The outlook
may be revised to Negative if cash accrual is lower than
expected, or if any major capital expenditure, or stretch in the
working capital cycle weakens liquidity.

Key rating drivers

Credit strengths

Established track record of the promoters in the garment export
business: PSAPL is a promoter-driven company led by Mr. Vinod
Kumar Jindal, who has over two decades of experience and is
actively involved in all the operations of the company.

Reputed clientele with track-record of repeat orders from large
customers: The company has track record of supplying seamless
garments to overseas customers and built healthy business
relationships over the years. Past trend of getting repeat orders
provides revenue visibility.

Credit challenges

High client concentration and geographical risk; however,
longstanding relationship with clients mitigate the risk: The top
three customers contribute around 90% to company's total sales
reflecting high customer concentration risk, however, the
association with these customers has been long and strong. PSAPL
supplies to well-known international players such as Kohl's and
Gap -- both USA-based groups, resulting in high geographical
risk.

Profit margins remain exposed to volatility in raw material
prices: Majority of the raw materials such as nylon and lycra are
sourced internationally which exposes the company to raw material
price fluctuation. Any adverse movement in the price of raw
materials could have an adverse impact on the company's margins.
Vulnerability of profitability to adverse foreign exchange
fluctuations: The company continues to focus on overseas markets
as almost 93-97% of its products are exported to the US, China
etc. As a result, it remains exposed to the risk of adverse
foreign exchange fluctuations.

Limited financial flexibility due to low current ratio: The
financial flexibility of the company is limited as the current
ratio is has been less than one time in the last few years.
Regular capex in the recent years and scheduled repayments has
kept the current ratio low despite equity infusion

Incorporated in 2004 by Mr. Jindal, PSAPL is a seamless garment
manufacturer and exporter particularly women's seamless garments.
It is a Five Star Export House situated in Gurgaon, Haryana with
a work area of 50,000 sq. feet. with an installed capacity to
manufacture ~48 lakh garment pieces in a year. Mr. Jindal has an
extensive experience of over two decades in the textile industry.
In FY2017, the company reported a net profit of INR1.1 crore on
an operating income (OI) of INR86.1 crore compared with a net
profit of INR0.4 crore on an OI of INR85.0 crore in the previous
year.


PRECISION INFOMATIC: Ind-Ra Gives BB+ LT Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Precision
Infomatic (M) Private Limited a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Stable. The instrument-wise rating actions
are as follows:

--INR140 mil. Fund-based working capital limit assigned with
IND BB+/Stable/IND A4+ ratings;

-- INR20 mil. Non-fund-based working capital limit assigned with
IND A4+ rating.

KEY RATING DRIVERS

The ratings reflect Precision's modest, albeit growing scale of
operations, declining EBITDA margins and moderate credit metrics
on account of increased manpower, and research and development
expenses for new products and services. Revenue grew at a CAGR of
17.5% to INR1,950 million (FY16: INR1,315 million) over FY14-FY17
on account of increased acceptance of its products and services.
However, EBITDA margins declined to 3.8% in FY17 (FY16: 4.1%,
FY15: 6.2%, FY14: 7.3%).

Net financial leverage (Ind-Ra adjusted net debt/operating
EBITDAR) improved to 4.4x (FY16: 5.5x) and interest coverage
(operating EBITDA/gross interest expense) to 1.6x (1.1x) on
account of an increase in absolute EBITDA to INR73.7 million
(INR53.4 million). Total debt stood at INR366.7 million at end-
FY17 (end-FY16: INR349.4 million). Ind-Ra expects the company's
overall credit profile to improve in the short-term with
increased focus on higher margins products and services. As of
December 2017, it achieved revenue of INR1,500 million and EBITDA
margin of 6.2%.

The ratings also factor in Precision's moderate liquidity
position as indicated by about 92.55% average peak utilization of
its fund-based working capital limits for the 12 months ended
December 2017. Net cash conversion cycle was moderate at 60 days
in FY17 (FY16: 74 days).

The ratings, however, are supported by Precision's two decades of
operational history and its promoters' more than 30 years of
experience in the IT industry, leading to established
relationships with customers and suppliers.

RATING SENSITIVITIES

Negative: A decline in the scale of operations and/or operating
profitability leading to deterioration in the credit metrics
and/or the liquidity position will be negative for the ratings.

Positive: A substantial increase in the scale of operations and
an improvement in the EBITDA margins leading to a sustained
improvement in the credit metrics will lead to a positive rating
action.

COMPANY PROFILE

Incorporated in 1996, Precision is a Chennai-based company
offering IT infrastructure services, system integration and
biometric solutions. It also provides annual maintenance contract
services to its clients.


PROTAC FOODS: ICRA Lowers Rating on INR18cr Term Loan to D
----------------------------------------------------------
ICRA has downgraded the long-term rating to [ICRA]D ISSUER NOT-
COOPERATING from [ICRA]B ISSUER NOT-COOPERATING for the INR22.00-
crore fund-based facilities of Protac Foods International Private
Limited (PFIPL). The rating continues to remain in the 'Issuer
Not Cooperating' category.

                     Amount
  Facilities       (INR crore)    Ratings
  ----------       -----------    -------
  Long-term-Fund-      4.00       [ICRA]D ISSUER NOT-COOPERATING;
  Based-Cash Credit                Revised from [ICRA]B (Stable)
                                   ISSUER NOT-COOPERATING

  Long-term-Fund-     18.00       [ICRA]D ISSUER NOT-COOPERATING;
  Based-Term Loan                  Revised from [ICRA]B (Stable)
                                   ISSUER NOT-COOPERATING

ICRA has limited information on the entity's performance since
the time it was last rated in February 2017.

As part of its process and in accordance with its rating
agreement with PFIPL, ICRA has been trying to seek information
from the entity so as to monitor its performance, but despite
repeated requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 1, 2016, ICRA's Rating Committee has taken a rating view
based on the best available information.

Rationale
The rating downgrade follows the delays in debt servicing by
PFIPL to the lender(s), as confirmed by them to ICRA. The
company's profitability and liquidity position has been impacted
owing to delays in stabilisation of the operations. With high
repayment obligations, delay in sanctioning of additional
working-capital facilities and delay in receipt of government
grant for the capital expenditure incurred, the company's
liquidity position remains stretched. Going forward, PFIPL's
ability to demonstrate a track record of timely debt servicing
will be the key rating sensitivity.

Key rating drivers

Credit strengths

Experience of the promoters in the food processing and poultry
industry: The promoters of PFIPL were involved in the poultry
industry prior to the establishment of the company, due to which
they have gained significant industry experience.

Credit challenges

Delay in debt servicing: Irregularities in debt servicing with
delay in principal and interest repayments owing to weak
liquidity position.

Nascent stage of operations: The company started its operations
in July 2016 and has been reporting losses at operating level as
of November 2016. Due to limited track record of operations, the
ability of the company to ramp up its production levels, increase
the capacity utilization and break even, is yet to be
demonstrated.

Weak capital structure with low net-worth and significant term
loan: There has been high dependency on external funding for the
capital expenditure incurred towards construction of the
processing plant, resulting in a weak capital structure with a
gearing of 3.70 times as on November 30, 2016.

Strained liquidity profile due to sizeable scheduled repayments
on the term loans; request for enhancement in the working-capital
loans not sanctioned: The liquidity profile remains weak with
negative accruals as on November 2016 and repayment of term loans
already having begun. Also, the company had requested for
enhancement in the working-capital limits to ease the liquidity
constraint and meet the increasing working requirements of the
growing business. However, the same is yet to be sanctioned by
the bank.

Incorporated in February 2014, PFIPL started its commercial
operations from July 2016. The company is engaged in processing
of poultry birds for production of dressed and frozen chicken.
The product portfolio of the company consists of fresh chilled
chicken, frozen chicken, chicken cut parts (whole, boneless and
portions) and ready to eat product (marinated chicken pieces).
The company's processing plant is located in Kolar district of
Karnataka and has an installed capacity of processing 6000 birds
per hour. However, with certain capital expenditure yet to
undertaken, the current operational capacity stands at 2500 birds
per hour.

As per provisional results for FY2017, the company reported a net
loss of INR5.64 crore on an operating income of INR10.96 crore
for the period from July 2016 to November 2016.


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

-- INR240 mil. Fund-based working capital limits affirmed with
IND BB-/Stable/IND A4+ rating.

KEY RATING DRIVERS

The affirmation reflects RS' continued moderate credit profile
and thin margins owing to intense competition and low entry
barriers which are characteristic features of a trading business.
In FY17, revenue decreased to INR1,840.3 million (FY16:
INR2,458.9 million, FY15: INR2,497.1 million) due to the general
slowdown in the steel market and demonetization impact. Net
leverage (Ind-Ra adjusted net debt/operating EBITDAR) improved to
5x in FY17 (FY16: 5.6x) on account of lower utilization of
working capital limits at end-March 2017, while EBITDA interest
cover (operating EBITDA/gross interest expense) was stable at
1.5x (1.5x). EBITDA margins were in the range of 1.8%-2.5% during
FY12-FY17 (FY17: 2.5%, FY16: 1.9%).

The firm achieved revenue of INR1,150 million as of December
2017. Ind-Ra expects revenue to continue to decline in FY18;
however, this is unlikely to impact RS' credit profile due to its
low operating leverage.

The ratings remain constrained by the company's tight liquidity
position as reflected by around 95% utilization of its working
capital limits for the 12 months ended January 2017.

The ratings continue to factor in the partnership structure of
the organization.

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

RATING SENSITIVITIES

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

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

COMPANY PROFILE

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


ROYALCARE SUPER: CRISIL Reaffirms B+ Rating on INR9.75MM Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Royalcare Super Speciality
Hospital Limited (RSSHL).

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Bank Guarantee       4.35        CRISIL A4 (Reaffirmed)
   Cash Credit          9.75        CRISIL B+/Stable (Reaffirmed)

The ratings continue to reflect exposure to risks related to
successful implementation, commercialization and stabilisation of
the second phase of the hospital project. The weakness is
partially offset by benefits derived from promoters support.

CRISIL had assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of RSSHL on November 21, 2017.

Key Rating Drivers & Detailed Description

Weaknesses

* Risks related to implementation of the project: The hospital is
exposed to risks related to implementation of phase 2 of the
project.  The phase 2 is in construction stage, and has been
completed close to 50 percent. The phase 2 is slated to be
completed by March 2018, and operational from April 2018.

* Risks related to stabilization of operations and demand risks:
The hospital will remain exposed to risks related to successful
stabilization of operations, and demand related risks. The second
phase will become operational from Apr-2018. The stabilization of
operations will remain a key monitorable.

Strength

* Benefits derived from promoters support: The Royal Care
Hospital is headed by Dr.K.Madeswaran, who is one of the leading
Neuro-Surgeon of Coimbatore and the Founder Chairman of the
Hospital. He is assisted by Dr.K.Chockalingam M.D., D.M
(Cardiology), an eminent Cardiologist of Coimbatore along with
Mr.K.P.Alagesan, a well-known Industrialist of Coimbatore.

Outlook: Stable

CRISIL believes RSSHL will benefit over the medium term from
benefits derived from promoters support. The outlook may be
revised to 'Positive' in case successful implementation of the
project & stabilisation of operations lead to higher-than-
expected revenue and operating profitability in first year of
operations. The outlook may be revised to 'Negative' if time or
cost overrun in ongoing project or delays in stabilising
operations leads to weaker-than-expected financial risk profile.

Royalcare Super Specialty Hospital Limited (RSSHL) is a 250
bedded multi-specialty hospital, engaged in providing tertiary
healthcare services. The hospital is a public limited entity,
based out of Coimbatore, and promoted by Dr. K.Madeswaran.


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

-- INR140 mil. Term loan migrated to Non-Cooperating Category
with IND B+ (ISSUER NOT COOPERATING) rating.

COMPANY PROFILE

SHRIPL was incorporated in 2014 to set up a multispecialty
hospital with a 138-bed capacity and advance machinery equipment
to provide better services to patients.
The company is managed by four directors: Dr. Santosh Kumar Rai,
Abhishek Bhargava, Saurabh Singhai and Akash Bajaj.


SERVOCONTROLS AEROSPACE: ICRA Ups Rating on INR9cr Loan to B
------------------------------------------------------------
ICRA has upgraded the long-term rating from [ICRA]B- to [ICRA]B
for the INR2.5-crore (enhanced from INR1.4 crore) fund-based
working-capital facilities, the INR9.00-crore (enhanced from
INR6.4 crore) term loans and the INR0.95-crore (revised from
INR1.40 crore) interchangeable facilities of Servocontrols
Aerospace India Private Limited (SAIPL). ICRA has also reaffirmed
the short-term rating at [ICRA]A4 for the INR0.5-crore fund-based
facilities (enhanced from INR0.2 crore) and the INR2.13-crore
(enhanced from INR2.0 crore) non-fund based bank facilities of
SAIPL. The outlook on the long-term rating is 'Stable'. Also,
ratings were removed from the 'Issuer not cooperating' category.

                           Amount
  Facilities            (INR crore)    Ratings
  ----------            -----------    -------
  Fund-based facilities       2.50     [ICRA]B (Stable); Upgraded
                                       from [ICRA]B-(Stable),
                                       removed from Issuer not
                                       cooperating category

  Term loans                  9.00     [ICRA]B (Stable); Upgraded
                                       from [ICRA]B-(Stable),
                                       removed from Issuer not
                                       cooperating category

  Interchangeable            (0.95)    [ICRA]B (Stable); Upgraded
                                       from [ICRA]B-(Stable),
                                       removed from Issuer not
                                       cooperating category

  Fund-based facilities       0.50     [ICRA]A4; Reaffirmed,
                                       removed from Issuer not
                                       cooperating category

  Non-fund based facilities   2.13     [ICRA]A4; Reaffirmed,
                                       removed from Issuer not
                                       cooperating category

Rationale

The rating upgrade takes into account the growth in revenues and
profitability in FY2017 and 9M FY2018 due to increased order
inflow from its key customers. The ratings also favourably factor
in the healthy order-book position, providing revenue visibility
over the near to medium term. The ratings draw comfort from the
extensive experience of the promoters in the engineering
industry, company's established relationship with its customers
supporting its business prospects and favorable outlook for
defence and aerospace verticals. The ratings, however, continue
to remain constrained by the company's modest scale of
operations, restricting operational and financial flexibility and
the moderate financial profile, marked by thin net margins in
FY2017.

The ratings are also constrained by the moderate capital
structure with a gearing of 2.8 times as on March 31, 2017 on
account of high working-capital requirements and debt-funded
capex undertaken in the last two fiscals and the moderate
coverage indicators. The ratings factor in the working-capital
intensive nature of operations on account of high inventory
holding requirements, resulting in high utilisation of working-
capital facilities. The ratings also factor in the company's high
customer concentration with top-three customers contributing to
~96% of the revenues in FY2017. Going forward, SAIPL's ability to
scale up operations and maintain healthy profitability while
effectively managing working-capital requirements will be key
rating sensitivities.

Outlook: Stable

ICRA expects SAIPL will continue to benefit from the extensive
experience of its promoters in the engineering industry, and its
healthy order-book position. The outlook may be revised to
'Positive' if the company is able to demonstrate substantial and
sustainable growth in revenues and profitability, resulting in
healthy cash accruals or if any improvement in its capital
structure strengthens the overall financial profile. The outlook
may be revised to 'Negative' if the company reports lower-than-
expected accruals or any stretch in working-capital cycle or
debt-funded capital expenditure, leading to weakening of
liquidity.

Key rating drivers

Credit strengths

Long experience of the promoters in the engineering industry:
Incorporated in 2008, SAIPL's promoters have over two decades of
experience in the industry. SAIPL's manufacturing unit is located
on a 60,000 sq. ft. land at Hattargi area, Belgaum. The company's
key products include hydraulics servo actuators, servo valves,
accumulators, temposonic sensors etc, which together contribute
to a major portion of the revenues. The promoters are also
involved in designing and manufacturing of hydraulic equipment
through the group entity, Servocontrols Hydraulics (India)
Private Limited.

Established relationship with key customers: Promoters have
healthy relationship with customers, resulting in repeat orders,
which provide stability to revenues. However, the customer
concentration remains high with the top-three customers
accounting for ~96% of the total revenues in FY2017.

Healthy growth in revenues and operating margins in FY2017;
order-book position provides revenue visibility in the near to
medium term: The operating income of the company grew by ~51% in
FY2017, owing to increased order flow from key customers and the
operating margin was healthy at 33.9% in FY2017 owing to better
absorption of overheads with the increase in scale of operations.
The company has a healthy order-book position with unexecuted
orders worth ~INR22 crore as on January 2018, to be dispatched
over the next 24 months which provides healthy revenue visibility
in the near to medium term.

Credit challenges

Modest scale of operations: The scale of operations of SAIPL
remains modest with operating income of INR6.5 crore in FY2017
(albeit improved from INR4.3 crore in FY2016), restricting
operational and financial flexibility to a major extent.

Moderate financial risk profile: Despite healthy operating
margins, the net margins remained thin at 1.6% in FY2017 owing to
increased depreciation and interest expenses due to debt-funded
capex of ~INR9.0 crore (funded through term loans of ~Rs. 7.0
crore) incurred over the last two fiscals. The high working-
capital borrowings, coupled with recent debt availed for purchase
of machinery and construction of building, resulted in a gearing
of 2.8 times as on March 31, 2017 and moderate coverage
indicators. With debt-funded capex plans towards the purchase of
machineries in FY2018, the capital structure and the coverage
indicators are likely to be impacted.

Stretched liquidity profile: High working-capital intensive
nature of operations due to requirement of high inventory
holdings results in high utilisation of working-capital
facilities.

Incorporated in 2008, SAIPL is primarily involved in machining
and fabrication of precision-engineering components, finding
applications in aerospace and defence sectors. The company is
promoted by Mr. Deepak Dhadoti and his brother, Mr. Dinesh
Dhadoti, who are qualified engineers with extensive experience in
the engineering industry. The company started its operations in
2008 and has over the last few years added several renowned
customers, including Goodrich Aerospace Pvt. Ltd., Rafael Advance
Defence Systems Ltd., Israel Aerospace Industries Limited-Israel,
etc. The company is a tier-II supplier at present for some of
these and it has AS 9100-Rev C certification. SAIPL has set up a
new manufacturing unit on a 60,000 sq. ft. land in Hattargi area
of Belgaum in FY2017.

In FY2017, the company reported a net profit of INR0.1 crore on
an operating income of INR6.5 crore compared to a net loss of
INR0.1 crore on an operating income of INR4.3 crore in the
previous year.


SHREE RAM: ICRA Keeps B+ Rating in Not Cooperating Category
-----------------------------------------------------------
ICRA Rating said the rating for the INR15.0 crore bank facilities
of Shree Ram Kripa Buildhome Pvt Ltd (SRKBPL) continues to remain
in the 'Issuer Not Cooperating' category. The rating is denoted
as "[ICRA] B+ (Stable) ISSUER NOT COOPERATING". ICRA has been
trying to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating
action has been taken by ICRA basis best available/dated/ limited
information on the issuers' performance. Accordingly the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.


                      Amount
  Facilities        (INR crore)     Ratings
  ----------        -----------     -------
  Fund based-Term        15.0       [ICRA]B+(Stable) ISSUER NOT
  Loan                              COOPERATING; Rating continues
                                    to remain in the 'Issuer Not
                                    Cooperating' category

Shree Ram Group (SRG) is a Jaipur based group promoted by Mr
Ashok Agarwal and Mrs. Renu Agarwal. SRG is a developed Real
Estate player prominently in Jaipur (Rajasthan) region with over
20 years into business. The group has executed various Townships,
Residential Colonies, Shopping Malls, Residential Flats, and
Hotels etc in Jaipur region (A snapshot of major projects
completed by the company is provided in Annexure I). As per
management discussion the company holds around INR800.00 crore
worth of land Bank in Jaipur region. The group has also been
recognized and felicitated for their quality work by various
state government and financial institutions


SHRI MAHALAXMI: CRISIL Assigns B Rating to INR5.5MM Cash Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of Shri Mahalaxmi Industries - Jodhpur
(SMIJ).

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

CRISIL's rating reflects SMIJ's modest scale of operations,
working-capital-intensive operations, and weak financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoter and long-term association with
customers.

Key Rating Drivers & Detailed Description

Weakness

* Weak financial risk profile: Networth was small at INR0.28
crore in fiscal 2017. Gearing was high at 5.83 times as on 31st
March, 2017 due to a large external debt and small networth. Debt
protection matrices were average, with modest interest coverage
and net cash accrual to total debt ratios of 1.84 times and 0.05
times respectively as on 31st March, 2017.

* Working-capital-intensive operations: Gross current assets have
been high at 75-125 days over the last three years through fiscal
2017, particularly due to a large inventory resulting from
seasonal nature of business.

* Modest scale of operations: Though SMIJ has been operational
for three decades, revenue was INR6.21 crore for fiscal 2017.
Bargaining power with customers is limited due to competitive
pressures arising from small scale of operations, which
constrains profitability.

Strengths

* Extensive experience of the promoters and long-term association
with customers: Promoter's (Mr Chenaram Tuk's) experience of
three decades and his active participation in core business
activities should continue to support the business, and help gain
repeat orders. Operations have enhanced over the years due to his
established market position.

Outlook: Stable

CRISIL believes SMIJ will benefit over the medium term from its
experienced management. The outlook may be revised to 'Positive'
if ramp up in scale of operations and profitability improves
business and financial risk profiles. The outlook may be revised
to 'Negative' if decline in revenue and margin, or a large debt-
funded capex deteriorates financial risk profile.

SMIJ is a proprietorship that manufactures and processes blanched
peanut and groundnut (plain and roasted) in shell and related
products. Additionally, it trades in maitra seed, sabudana,
garlic, castor seed, raida, and spices, such as haldi, mirchi,
jeera, old bardana, and so on. Manufacturing facility is in
Jodhpur, and end product is supplied all over India, mainly to
Mumbai and Kolkata.


SHYAM TIMBER: ICRA Moves B+ Rating to Not Cooperating Category
--------------------------------------------------------------
ICRA has moved the long-term ratings and the short-term ratings
for the bank facilities of Shyam Timber Private Limited (NSPL) to
the 'Issuer Not Cooperating' category. The rating is now denoted
as "[ICRA]B+ (Stable)/[ICRA]A4 ISSUER NOT COOPERATING".

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund-based-Cash         2.00      [ICRA]B+ (Stable) ISSUER NOT
  Credit                            COOPERATING; Rating moved to
                                    the 'Issuer Not Cooperating'
                                    category

  Non-fund Based-        13.00      [ICRA]A4 ISSUER NOT
  LC(Import/Inland)                 COOPERATING; Rating moved to
  FCL/Buyer's Credit                the 'Issuer Not Cooperating'
                                    category

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

Shyam Timber Private Limited (STPL) started operations as a
partnership firm in the early 1990s and later changed the
constitution to a closely-held company in March 2000. The company
is currently headed by Mr. Praveen Jethwa, along with his brother
Mr. Sunil Jethwa. The promoters have a long experience in the
timber industry. STPL is currently involved in the timber trade
and it imports teakwood from the African countries and sells it
to saw mills in India. The company's unit is in Gandhidham,
inKutch District (Gujarat), near the Kandla port. It has also set
up a branch office in Mumbai to import timber at Nhava Sheva
port, in order to serve its South-based customers.


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

-- INR430 mil. Fund-based working capital limit migrated to Non-
     Cooperating Category with IND B+ (ISSUER NOT COOPERATING)
     Rating; and

-- INR18.30 mil. Term loan migrated to Non-Cooperating Category
    with IND B+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 28, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

SAPL was incorporated in 2003, in Patna (Bihar), as a partnership
firm. Later it was converted into a private limited company in
2007, with Mr. Bidhan Chand Roy as the managing director. SAPL is
engaged in vehicle dealership business of Mahindra & Mahindra
Limited ('IND AAA'/Stable).


SREE GURUDEVA: Ind-Ra Puts BB- Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sree Gurudeva
Charitable and Educational Trust's bank loans' rating to non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are given below:

-- INR161.24 mil. Bank loans migrated to Non-Cooperating
Category with IND BB- (ISSUER NOT COOPERATING) rating; and

-- INR70 mil. Fund-based working capital facilities migrated to
     Non-Cooperating Category with IND BB- (ISSUER NOT
COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The rating was last reviewed on
February 20, 2017. Ind-Ra is unable to provide an update as the
agency does not have adequate information to review the rating.

COMPANY PROFILE

SGCET was established in 2008 in Pallickal, Kerala. The trust
manages Sri Vellappally Natesan College of Engineering since 2008
and offers B.Tech and M.Tech courses. Mr. Tushar Vellapally is
the chairman of the trust.


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

-- INR180 mil. Fund-based limits (Long term) migrated to Non-
     Cooperating Category with IND D (ISSUER NOT COOPERATING)
rating;

-- INR41.38 mil. Long term loans (Long term) migrated to Non-
     Cooperating Category with IND D (ISSUER NOT COOPERATING)
rating; and

-- INR3 mil. Non-fund-based limits (Short term) migrated to Non-
     Cooperating Category with IND D (ISSUER NOT COOPERATING)
rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 7, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 1998, SIPL is part of the Srithik Group. The
company manufactures sponge iron from iron ore and coal. SIPL has
an 18,000mtpa manufacturing facility in Sanguem, Goa.

The company is headed by Mr. Shikhir Vir Agarwal and Mrs. Girija
Agarwal, who collectively have an experience of over a decade in
the iron and steel industry.


UNITED BUILDERS: ICRA Assigns B Rating to INR15cr LT Loan
---------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to the INR15.00-
crore unallocated limits of United Builders (UB). The outlook on
the long-term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long term-
  Unallocated Limits     15.00      [ICRA]B (Stable); Assigned

Rationale

The assigned rating is constrained by the significant execution
and market risk associated with the entity's only ongoing
project, United Meadows, given the nascent stage of project
execution and low level of bookings till date. ICRA also takes
notes of the funding risk associated with the project, with debt
yet to be tied up. The rating also takes into account the firm's
exposure to intense competition in the Bengaluru real estate
market and the risk emanating from partnership constitution of
the firm, which exposes it to risks related to withdrawal of
capital, dissolution of firm etc.

The rating, however, positively factors in the long experience of
the promoters in the real estate industry with moderate project
execution capabilities as demonstrated through completion of 0.7
million square feet (msft) of development. The rating also
considers the favorable location of the ongoing project- United
Meadows, located in Whitefield, East Bengaluru with developed
social infrastructure including international schools, shopping
malls and multi-specialty hospitals. ICRA also notes that all
requisite approvals for the project development are in place.
Going forward, ability of the firm to achieve healthy sales,
collect customer advances and execute the on-going project in a
timely manner will be the key rating sensitivities.

Outlook: Stable

ICRA believes that United Builders will continue to benefit from
the extensive experience of its promoters. The outlook may be
revised to Positive in case of better-than-expected sales
performance and execution progress in the ongoing project
resulting in improved cash flows. The outlook may be revised to
'Negative' if cash flow from operations is lower than expected,
either because of subdued response to the projects or low
customer advances or if any significant delay in completion
weakens the liquidity position of the company.

Key rating drivers

Credit strengths

Long standing experience of promoters in the real-estate
industry: Established in 2017, UB is engaged in real-estate
development with Mr. Manohar Naidu Jagarlamudi and his associates
as partners. The promoters of the firm have long experience in
the field of real estate development and construction through
other group concerns and have completed eight residential
apartment projects in various parts of Bengaluru in their
personal capacity with ~0.7 million square feet (msqft) of
development.

Favourable location of the entity's only ongoing project: The
entity's only ongoing project, United Meadows, is located in Off
Kundanahalli Main Road, Whitefield, in East Bengaluru. The
project is located close to several Information Technology (IT)
and business establishments having developed social
infrastructure including international schools, several
supermarkets, shopping mall and multi-specialty hospitals.

Low regulatory risk: The project is being developed partly on
firm's own land and partly under Joint Development Agreement
(JDA) mode such that the firm has 89% share in the total saleable
area. The land parcel admeasuring ~2 acres 34 guntas has been
acquired by the land owner and has a clear legal title. The land
cost of Rs.17.9 crores was contributed through promoters, which
has been fully paid up. Further, all the requisite approvals
related to building plan, map etc have been secured, resulting in
low regulatory risk.

Credit challenges

High exposure to market risk due to significant unsold area: The
firm has received bookings for six out of 169 residential units
in its share (~4% of total saleable area) at an average sale
price of ~INR4,000 per square feet (sqft) with a total sales
consideration of ~INR3.0 crore.

High execution risk as the project is in the nascent stage of
construction: As of December, 2017, the firm had incurred Rs.19.5
crore on the project, which is around 29% of the total project
cost primarily towards acquisition of land parcel indicating
nascent stage of project progress, exposing the entity to high
execution risk.

Exposure to funding risk as debt for the project has not been
tied up yet: The total cost of the project is envisaged at around
INR67.8 crore. The same is proposed to be financed with a mix of
term-loan facility of INR15.0 crore, partners' capital of INR20.5
crore and the remaining through customer advances. The financing
tie-up for the proposed INR15.0-crore term loan is underway and
the promoters have already brought in significant portion of
their contribution. Debt tie-up and timely receipt of customer
advances as sales pick up would be crucial for the current
progress of the project.

Exposure to inherent cyclicality in the real-estate industry
coupled with prevailing weak macro-economic scenario: UB's
business is significantly dependent on the performance of the
real-estate market in Bengaluru, where its ongoing project is
located. Being a cyclical industry, real estate is highly
dependent on macro-economic factors. Dependence on a particular
geography further heightens such risk.

United Builders (UB) was incorporated in the year 2017 as a
partnership firm with Mr. Manohar Naidu Jagarlamudi and his
associates as partners. The entity is into the business of real
estate development and is presently executing its first
residential apartment project namely, United Meadows in
Kundhanahalli, Whitefield, Bengaluru. The construction for the
project started in October, 2017 and is likely to be completed by
September, 2020. The project consists of three towers, comprising
of G+4 floors each with 192 residential units. The ticket size of
the apartment ranges from Rs.0.45 crore to Rs.0.75 crore.


VIMAL MICRONS: ICRA Moves B+ Rating to Not Cooperating Category
---------------------------------------------------------------
ICRA has moved the long-term rating and the short-term rating for
the bank facilities of Vimal Microns Limited (VML) to the 'Issuer
Not Cooperating' category. The rating is now denoted as "[ICRA]B+
(Stable)/[ICRA]A4 ISSUER NOT COOPERATING".

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund-based-Term         0.33       [ICRA]B+ (Stable) ISSUER NOT
  Loan                               COOPERATING; Rating moved to
                                     the 'Issuer Not Cooperating'
                                     category

  Fund-based-Cash        25.60       [ICRA]B+ (Stable) ISSUER NOT
  Credit                             COOPERATING; Rating moved to
                                     the 'Issuer Not Cooperating'
                                     category

  Non-fund Based-         1.25       [ICRA]A4 ISSUER NOT
  Bank Guarantee                     COOPERATING; Rating moved to
                                     the 'Issuer Not Cooperating'
                                     category

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

Vimal Microns Limited (VML), established in 1993 by Mr.
Ganpatbhai K. Patel and associates, is engaged in manufacturing
micronised mineral powder used as fillers in various paint and
polymer industries. The company's manufacturing setup is located
in the Mehsana district of Gujarat. Its production capacity is
88,800 TPA.



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


LIPPO KARAWACI: Fitch Lowers Long-Term IDR to B+; Outlook Stable
----------------------------------------------------------------
Fitch Ratings has downgraded Indonesia-based property developer
PT Lippo Karawaci TBK's Long-Term Issuer Default Rating to 'B+'
from 'BB-'. At the same time, Fitch Ratings Indonesia has
affirmed the company's National Long-Term Rating at 'A+(idn)'.
The Outlooks are Stable.

The downgrade reflects Fitch expectations of significantly
reduced cash flow access from property sales following the
company's strategic decision to divest a substantial stake of its
flagship Meikarta project, which the company owns via its 54%-
held subsidiary, PT Lippo Cikarang Tbk (LPCK). Fitch forecast
Lippo to generate property sales of around IDR700 billion-800
billion annually over the medium-term excluding the Meikarta
project. This compares to attributable presales of around IDR4
trillion before plans to divest the project.

Lippo disclosed on Jan. 31, 2018 that PT Mahkota Sentosa Utama -
which owns the Meikarta project and is a wholly owned subsidiary
of LPCK - received IDR2.5 trillion from an external investor as
an advance for subscription of its shares. The advance is part of
a total of around IDR4 trillion (USD300 million) and the sale,
when completed, could ultimately see Lippo's stake in this
project fall to around 27%, from 54%. Accordingly this will
reduce Lippo's access to the Meikarta cash flow, which Fitch
expected to represent the majority of Lippo's cash flow from its
property development business. Should the sale not go ahead, as
regulatory and other approvals remain outstanding, it nonetheless
signals Lippo's intentions and the significantly lower cash flow
contribution from property development projects.

The affirmation of the National Long-Term Rating reflects Fitch
view that, even after Lippo's planned divestment, its credit
profile will remain stronger than that of peers with National
Ratings at or below 'A(idn)'. This is underpinned by its
diversified commercial property portfolio that provides robust
recurring cash flow and is counterbalanced by high leverage, as
measured by net adjusted debt/adjusted inventory (excluding
LPCK), which Fitch expect to remain at around 60%-65% in the
medium term.

'A' National Ratings denote expectations of low default risk
relative to other issuers or obligations in the same country.
However, changes in circumstances or economic conditions may
affect the capacity for timely repayment to a greater degree than
is the case for financial commitments denoted by a higher rated
category.

KEY RATING DRIVERS

Limited Property Cash Flow Access: Fitch expects Lippo's cash
flow to reduce significantly following the divestment of the
Meikarta project, which marks a significant shift in Lippo's
strategy to finance property projects via joint ventures while
moving away from the pre-sale model that underwrote construction.
Fitch believe the project will incur significant construction
costs and investment outlays in the next two to three years as it
ramps up, with the bulk of the cash flow likely to be available
thereafter. However if Lippo's divestment of the project is
completed, the company's share of project construction costs will
reduce significantly.

Large and Diversified Portfolio: Lippo has one of Indonesia's
most diversified commercial property portfolios, which includes
shopping malls, hotels, educational institutions and a 51% share
in the country's largest listed hospital network - PT Siloam
International Hospitals Tbk. Lippo also receives substantial
dividends from its Singapore-listed REITs. The portfolio
generated attributable recurring EBITDA of around IDR1.5 trillion
at end-2016 (USD100 million) and Fitch expect this to increase to
around IDR1.6 trillion by end-2018. Attributable recurring EBTIDA
should cover Lippo's interest expenses and operating leases by
more than 1.0x over the medium term.

Low-Cost Land Bank: Lippo had undeveloped land of more than 6.0
million square meters (sq m) at end-June 2017, including 1.2
million sq m at LPCK but excluding land in projects that are
under development. Much of this land bank was acquired at a low
historical cost, supporting Lippo's strong EBITDA margin of more
than 35%, after adding back capitalised interest expense, for the
last few years. Most of the group's property cash flow will stem
from LPCK and Meikarta over the medium-term, but a large majority
of its land bank still resides at Lippo and offers long-term
development potential.

DERIVATION SUMMARY

Lippo's limited access to property cash flow from Meikarta will
weaken its credit profile compared with peers such as PT Bumi
Serpong Damai Tbk (BB-/Stable) and PT Pakuwon Jati Tbk (BB-
/Positive). Both peers have strong access to medium- to large-
property development cash flow in addition to substantial and
diversified recurring EBITDA generation and low leverage.

Lippo's credit profile, excluding LPCK, compares more closely
with peers such as PT Kawasan Industri Jababeka Tbk (Jababeka,
B+/Stable), which has a concentrated and small portfolio of
assets generating recurring EBITDA of USD25 million-30 million,
but large property presales of around IDR1.0 trillion-1.5
trillion per year.

PT Alam Sutera Realty Tbk (B/Stable) and PT Modernland Realty Tbk
(B/Stable) generate higher attributable property sales of around
IDR2 trillion annually, compared with Lippo's IDR700 billion-800
billion, excluding LPCK. However, Lippo's strong recurring cash
flow profile and diversified portfolio more than offsets the
risks from lower property sales and provides sufficient coverage
of Lippo's interest cost and fixed charges.

Lippo's credit profile is stronger than its Nationally rated
peers at 'A(idn)' or below, despite the lower cash flow on
account of the Meikarta project divestment. Jababeka's 'A(idn)'
rating with Stable Outlook is supported by recurring EBITDA,
which is highly concentrated to the cash flow of a single power
plant and therefore more susceptible to disruption. This has seen
its recurring EBITDA fixed-charge coverage fall below 1.0x. The
coverage level is the same as for Lippo but Fitch believe Lippo's
recurring EBITDA is more robust as it stems from a diversified
property portfolio - hence the notch differential.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch  rating case for the issuer
include:
- The Meikarta project will be divested as planned
- Annual pre-sales at Lippo of around IDR700 billion-800 billion
- Sales from the Meikarta project to post a gross profit margin
   of around 20% in the next three years
- Annual recurring revenue growth of 5% from malls, hotels,
   infrastructure and property management (2016: 14%)
- Healthcare revenue to increase by 18% in 2017 and 15% in 2018,
   with EBITDA margins of 11%-12% (2016: revenue growth 25%;
   EBITDA margin 13%)
- No asset injections to the REITs due to significant
   uncertainty around the timing of these injections

Recovery rating assumptions
- Lippo, excluding Siloam International Hospitals and LPCK, will
   be liquidated during bankruptcy because it is primarily an
   asset-trading company
- 10% administrative claims
- A 25% haircut on trade receivables
- A 50% haircut on the book value of adjusted inventory, which
   is in line with domestic and regional peers
- A 50% haircut on net property plant and equipment
- Based on Fitch  calculation of the adjusted liquidation value
   after administrative claims, Fitch estimate the recovery rate
   of senior unsecured bonds to be 81%, which corresponds to a
   Recovery Rating of 'RR2'. However, Fitch have rated the senior
   unsecured bonds 'B+'/'RR4' because Indonesia falls into
   Group D of creditor-friendliness under Fitch  Country-Specific
   Treatment of Recovery Ratings criteria and the instrument
   ratings of issuers with assets in this group are subject to a
   soft cap at the issuer's Issuer Default Rating.

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action
Fitch do not expect Lippo's rating to be upgraded over the
medium-term given the company's high leverage and significantly
reduced cash flow generation.

Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Attributable recurring EBITDA fixed-charge coverage below 1.0x
   for a sustained period.
- Leverage, excluding LPCK, at more than 65% for a sustained
   period.

LIQUIDITY

Comfortable Liquidity: Lippo's earliest significant debt maturity
is in 2022, when the USD410 million 7% senior unsecured notes
issued by subsidiary, Theta Capital Pte Ltd, fall due. Lippo
refinanced a significant portion of its debt in 2016, including
the first-time issuance of a 10-year USD425 million note at
6.75%. Lippo has around IDR1.0 trillion of near-term debt
maturities due in 2018, compared with readily available cash of
IDR1.5 trillion.

FULL LIST OF RATING ACTIONS

PT Lippo Karawaci TBK
- Long-Term Issuer Default Rating downgraded to 'B+' from 'BB-';
   Outlook Stable
- Local-Currency Long-Term Issuer Default Rating downgraded to
   'B+' from 'BB-'; Outlook Stable
- Long-term senior unsecured rating downgraded to 'B+'/'RR4'
   from 'BB-'
- National Long-Term Rating affirmed at 'A+(idn)'; Stable
   Outlook

Theta Capital Pte Ltd
- USD410 million senior unsecured 7.00% notes due 2022
   downgraded to 'B+'/'RR4' from 'BB-'
- USD425 million senior unsecured 6.75% notes due 2026
   downgraded to 'B+'/'RR4' from 'BB-'



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


TH HEAVY: On Track to Exit PN17 After Transfer of FPSO Job OK'd
---------------------------------------------------------------
The Sun reports that TH Heavy Engineering Bhd (THHE) is on track
to emerge from its Practice Note 17 (PN17) status, after it
received shareholders approval to transfer its floating,
production, storage and offloading (FPSO) job awarded by JX
Nippon Oil & Gas Exploration (Malaysia) Ltd, to Yinson Holdings
Bhd on Feb. 15.

According to the report, the novation of the contract is part of
the group's scheme arrangement with its creditors to regularise
its financial condition. THHE has about three months to submit
its regularisation plan to the authorities.

"The shareholders have given us 100% support. So our next phase
is to complete the regularisation process, which involves the
issuance of new shares subject to the Bursa approval," THHE CEO
Suhaimi Badrul Jamil told reporters after its EGM, the Sun
relays.  "The novation of the contract is critical component of
our scheme arrangement. So we hope to be on track to regain back
our footing and get out of PN17 as soon as possible," he added.

According to the report, THHE was unable to deliver the project
to JX Nippon scheduled on June 30, 2016 and complete the
conversion works of FPSO Layang Vessel, because it could not
raise the necessary funding.

The Sun says the group recently announced that it will receive
MYR374 million cash as proceeds of the novation agreement, of
which MYR352.8 million has been earmarked as payment for scheme
creditors.

Suhaimi also noted that the group is looking to dispose its
underutilised assets to pay off its debts, which is expected to
raise some MYR12 million, the Sun relays.

"We have some cranes at our yard and other equipment that we
purchased and identified that is under utilised. We are trying to
dispose all of those items," he added, notes the report.

Upon completion of the scheme arrangement, Suhaimi said the group
is hoping to pare down its borrowings to around MYR65 million,
from over MYR900 million currently, the report relates.

"It is a big step but we would like to assure that the board will
do whatever that is required to preserve value for shareholders,"
the report quotes Suhaimi as saying.

Asked on the progress of its joint venture with Destini Bhd to
supply three units of offshore patrol vessels (OPV) for the
Malaysian Maritime Enforcement Agency (MMEA), Suhaimi said the
parties are on track to deliver the project, notes The Sun.

"We started the physical work at our yard in December last year.
This is sort of our pioneer project in shipbuilding and part of
our plans to re-focus and also to diversify our earnings," he
added, according to the report.

The report notes that the construction of the three units of OPV
is estimated to take three and a half years to complete.

                          About TH Heavy

TH Heavy Engineering Berhad is an investment holding company. The
Company is engaged in the provision of management services. The
Company is engaged in the fabrication of offshore steel
structures and the provision of other related offshore oil and
gas engineering services in Malaysia. The Company operates
through three segments: Construction services, Offshore crane
works and Others. The Construction services segment includes
engineering, procurement, construction, installation and
commissioning (EPCIC) capabilities. Its EPCIC activities include
fabrication, construction and maintenance of offshore structures;
construction and maintenance of onshore plants; offshore and
onshore crane manufacturing and servicing; marine operations and
support services; hook-up and commissioning (HUC), and engineered
packages. The Others segment includes management services and
transportation services. Its subsidiary, O&G Works Sdn. Bhd.,
produces a range of marine and offshore pedestal cranes.

TH Heavy slipped into Practice Note 17 (PN17) status in April
2017 after the company's independent auditors expressed a
disclaimer opinion on its accounts for the financial year ended
Dec. 31, 2016.



=====================
P H I L I P P I N E S
=====================


RURAL BANK OF LORETO: Placed Under PDIC Receivership
----------------------------------------------------
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP)
prohibited Rural Bank of Loreto (Surigao del Norte), Inc. from
doing business in the Philippines. Under Resolution No. 198.A
dated February 9, 2018, the MB directed the Philippine Deposit
Insurance Corporation (PDIC) as Receiver to proceed with the
takeover and liquidation of the bank. PDIC took over the bank on
February 14, 2018.

Rural Bank of Loreto is a four-unit rural bank with Head Office
located in Purok 1, Brgy. San Juan, San Jose, Dinagat Islands,
Surigao del Norte. Its three other banking offices (OBOs) are
located in Cagdianao, Libjo (Albor), and Loreto, all in Dinagat
Islands.

Latest available records show that as of December 31, 2017, Rural
Bank of Loreto had 2,264 deposit accounts with total deposit
liabilities of PHP5.95 million. Total insured deposits amounted
to PHP5.94 million equivalent to 99.9% of total deposits.

PDIC assured depositors that all valid deposits and claims shall
be paid up to the maximum deposit insurance coverage of
PHP500,000.00. Individual depositors with valid deposit accounts
with balances of PHP100,000.00 and below shall be eligible for
early payment and need not file deposit insurance claims,
provided they have no outstanding obligations with Rural Bank of
Loreto or have not acted as co-makers of these obligations. These
individual depositors must ensure that they have complete and
updated addresses with the bank. They may update their addresses
until February 20, 2018 using the Mailing Address Update Forms to
be distributed by PDIC representatives at the bank premises.

For business entities and all other depositors who are required
to file claims for deposit insurance, the schedule for filing of
claims will be announced as soon as possible through posters in
the bank premises and in other public places, the PDIC website,
www.pdic.gov.ph, and PDIC's official Facebook account.

PDIC also reminded borrowers to continue paying their loan
obligations with the closed Rural Bank of Loreto and to transact
only with designated PDIC representatives at the bank premises.

For more information on the requirements and procedures for
filing claims for deposit insurance and settlement of loan
obligations, all depositors and borrowers of the bank are
enjoined to attend the Depositors-Borrowers' Forum which will be
held in venues near the premises of the bank on February 24,
2018. Details will be posted in the bank premises and in other
public places.

Depositors and borrowers may communicate with PDIC Public
Assistance personnel stationed at the bank premises or call the
PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631
or the Toll Free Hotline at 1-800-1-888-PDIC (7342) for those
outside Metro Manila. Inquiries may also be sent by e-mail to
pad@pdic.gov.ph or via private message to the official PDIC
Facebook account at www.facebook.com/OfficialPDIC.



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


EMAS OFFSHORE: Gets Court's Nod to Convene Creditors' Meeting
-------------------------------------------------------------
The Strait Times reports that Emas Offshore, together with its
wholly owned subsidiaries Emas Offshore Pte Ltd and Emas
Offshores Services, successfully obtained on Feb. 15 the High
Court's leave to convene their respective creditors' meeting to
consider the scheme of arrangement being proposed to their
creditors.

This is with the support of the group's principal bank lenders
for the group's restructuring plan based on the BTI Term Sheet,
Emas said, the report relays. In addition, the court has extended
the moratoriums restraining proceedings or enforcement by
creditors against the companies until June 30 this year or
further, the report says.

Emas had entered into a revised term sheet in December with BT
Investment (BTI), a wholly owned subsidiary of Baker Technology,
The Strait Times recalls. In September, BTI was named as one of
two investors to have pledged a combined US$50 million equity
injection.

The Strait Times relates that in a filing to the Singapore
Exchange on Feb. 15, Emas said: "The restructuring group is
hopeful that having obtained the court's leave to convene the
creditors' meeting and the extensions of the existing moratoriums
will provide the impetus and stability to the group to progress
the restructuring exercise and provide the group's stakeholders
with added clarity as to the next steps ahead."

It added that the group will work closely with its investors,
principal bank lenders and other stakeholders on the
restructuring exercise, the report relays.

Singapore-based EMAS Offshore Limited (SGX:UQ4) --
http://www.emasoffshore.com/home/-- engages in the offering of
offshore support, accommodation and offshore production services
to customers in the offshore oil and gas industry throughout the
oilfield lifecycle, spanning exploration, development, production
and decommissioning stages. It operates through two business
segments: Offshore Support and Accommodation Services division,
and Offshore Production Services division.


GOLDEN ENERGY: Fitch Assigns Final B+ Rating to US$150MM Notes
--------------------------------------------------------------
Fitch Ratings has assigned Singapore-based Golden Energy and
Resources Limited's (GEAR, B+/Positive) US$150 million 9% notes
due 2023 a final rating of 'B+' and a recovery Rating of 'RR4'.

The notes are rated at the same level as GEAR's Issuer Default
Rating as they constitute the direct, unsubordinated and
unsecured obligations of the company. The assignment of the final
rating follows a review of final documents conforming to draft
documentation previously received. The final rating is the same
as the expected rating assigned on Jan. 18, 2018.

Fitch has assessed GEAR's rating based on a consolidated group
profile, given the moderate linkages between GEAR and its 67%-
owned coal-mining subsidiary, PT Golden Energy Mines Tbk (GEMS,
B+/Positive), and the relative credit profiles of the two
entities. The rating reflects GEAR's strong financial profile,
healthy reserve life, track record of production growth and the
moderate sensitivity of its credit metrics to benchmark coal
prices. The Positive Outlook reflects Fitch expectation that the
company will be able to successfully continue its production
ramp-up to a level commensurate with the profile of a 'BB-' rated
entity over the next 12-18 months.

KEY RATING DRIVERS

Linkages Between GEAR, GEMS: The linkages between GEAR and GEMS
are moderate, as assessed under Fitch's Parent and Subsidiary
Rating Linkage criteria. GEAR retains majority control over the
board of directors and commissioners of GEMS. An agreement
between GEMS's shareholders ensures that the company will
maximise profit distribution by paying at least 80% of its free
cash flow as dividends.

Fitch will reassess this rating approach should there be weakness
in linkages between the two companies. Fitch adjusts the
consolidated credit metrics to only include 67% of GEMS due to
the presence of a strong minority shareholder at GEMS - GMR Coal
Resources Pte. Ltd, which owns 30% of GEMS. GEAR's standalone
operations are not very material and most of its earnings are
derived from GEMS's dividends.

Production Increase: GEMS has demonstrated a successful track
record in ramping up production. Coal produced increased to 15.6
million metric tons (mt) in 2017 from 9.5 million mt in 2016, and
it recorded a production CAGR of about 33% over the past three
years. Fitch expect GEMS to increase production at its currently
producing mines by about 5-8 million mt per year over the next
three years. Fitch also expect total capex on increasing
production to range between USD30 million and USD50 million over
the next three years, mainly to upgrade the capacity of its
hauling roads, crushers and barge loading conveyors.

However, capex to raise production remains lower than some of its
peers, primarily due to the proximity of its main coal mine to
the loading port. Fitch may consider upgrading the ratings of
GEAR and GEMS if GEMS is able to increase its production to 30
million tonnes per annum on a sustained basis, which will also
allow GEAR to continue maintaining an adjusted EBITDA (based on a
proportionate consolidation of GEMS) of over USD150 million,
factoring in Fitch long-term coal price assumptions.

Moderate Sensitivity to Coal Prices: The cost position of GEMS's
coal production in South Kalimantan, Indonesia, held under its
99%-owned subsidiary PT Borneo Indobara (BIB), is among the
world's top quartile due a low strip ratio of about 4x coupled
with short haulage. This resulted in direct cash costs of about
USD22/mt in 9M17. However, the calorific value (CV) of GEMS's
coal is low compared with the Indonesian average, which results
in a lower selling price. The ratings reflect Fitch EBITDA
expectation of USD9-10/mt in 2018 under Fitch price assumptions
of USD72/mt for Newcastle 6,000 kcal in 2018. Over 80% of coal
produced by GEMS is from its BIB mine.

Healthy Reserves, Long Contract Life: GEMS has the fourth-largest
coal reserves in Indonesia with proved reserves of about 676
million tonnes as at end-October 2017, translating to a reserve
life of over 25 years based on its 2018 production. GEMS's BIB
mine holds over 500 million tons of its proved reserves with a
mining licence that is valid until 2036, alleviating concerns
over licence renewal. Most established Indonesian coal miners
face licence renewal risks over the next five years. Fitch
believe GEMS is unlikely to rush into any acquisitions given its
large reserves, although GEAR plans to use the majority of the
notes' proceeds on acquisitions or investments.

Conservative Financial Profile: The rating reflects Fitch
expectations that the company will continue to maintain a
conservative credit profile, aided by increasing production
volumes, healthy pre-dividend cash flow generation, moderate
capex in relation to its operating cash flows and relatively low
interest expense. GEAR's adjusted net leverage was less than 1x
and its cash balances have exceeded debt since 2016. Fitch also
expect GEAR to continue maintaining a conservative and prudent
financial profile.

Cyclical Coal Industry Exposure: GEAR's earnings are vulnerable
to the thermal coal industry's cyclicality. Thermal coal prices
are currently at their highest for the past five years (Newcastle
6,000 kcal at over USD100/mt). Fitch expects production to rise
in response to higher prices, which should lead to further price
moderation over the medium term and is reflected in Fitch price
assumptions. Fitch also expect Asian thermal coal prices to be
highly susceptible to import demand in the region, particularly
Chinese demand, and policies relating to the coal sector.

DERIVATION SUMMARY

The rating is based on the consolidated credit profile of the
GEAR group, due to the moderate linkages between GEAR and GEMS
and their relative credit profiles. The ratings factor in the
group's strong credit ratios, large reserve base and moderate
sensitivity to coal prices. GEAR's leverage, coverage and
refinancing profile is stronger than PT Indika Energy Tbk's
(B+/Positive) and it has a stronger reserve life compared with
Indika. However, Indika's operations are larger and more
integrated, and its earnings are also larger and more
diversified. The production capacity of Indika's key coal asset,
Kideco, is well-established and at its peak, compared with GEMS,
which is currently ramping up production. Fitch also think that
both companies demonstrate comparable sensitivities to declines
in coal prices. The Positive Outlook on Indika reflects Fitch
expectations of the flexibility available to Indika to address
its lumpy debt maturities while GEMS's Positive Outlook reflects
Fitch expectations of a successful production ramp-up.

GEMS's financial profile is largely comparable with Geo Energy
Resources Limited's (B+/Stable). However, GEMS has a stronger
business risk profile with a substantially larger reserve base
and higher potential production levels, which are reflected in
its Positive Outlook, while Geo is constrained at the current
rating level due to its smaller operations.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Fitch Rating Case for the Issuer
Include:
- Index coal prices in line with Fitch's mid-cycle commodity
   price assumptions, adjusted for differences in CV (average
   Newcastle 6,000 kcal free-on-board: USD72/mt in 2018 and
   USD67/mt thereafter)
- Selling prices at GEMS in line with the average discount
   of its various grades of coal to Newcastle coal prices.
   About 2-3 million tonnes per annum sold on relatively fixed
   prices.
- Total volume of coal produced in 2018, 2019 and 2020 amounting
   to 21.5 million mt, 26.8 million mt and 32.5 million mt,
   respectively.
- Capex incurred in 2018, 2019 and 2020 of USD46 million, USD30
   million and USD35 million, respectively, mainly to increase
   the capacity at its BIB mine.
- No production factored in from the group's new acquisitions.
- Acquisition of PT Barasentosa Lestari (BSL) for USD60 million
   in 2018 without factoring in the related production.

Fitch's key assumptions for bespoke recovery analysis include:

- The recovery analysis assumes that GEAR and its subsidiaries
   would be considered a going concern in bankruptcy, and that
   the company would be reorganised rather than liquidated.
   Fitch have assumed a 10% administrative claim.
- GEMS's going-concern EBITDA is based on the amount expected
   for 2017, and includes pro-forma adjustments for the EBITDA
   contributions from increasing coal volumes and Fitch's coal
   price assumptions over the next three years.
- The going-concern EBITDA estimate reflects Fitch's view of a
   sustainable, post-reorganisation EBITDA level upon which Fitch
   base the valuation of the company. The going-concern EBITDA is
   30% below the mid-cycle EBITDA based on the long-term average
   thermal coal price assumptions used by Fitch. The post-
   reorganisation EBITDA assumes some post-default operating
   improvement, and is at a level that may violate the covenants
   for its US dollar notes.
- An enterprise value (EV) multiple of 3.5x is used to calculate
   a post-reorganisation valuation for GEMS based on some recent
   Indonesia coal asset transactions. The historical EV multiple
   for companies in the natural resources sector ranged from
   5.8x-11x, with a median of 8.7x.
- Fitch has excluded debt at GEMS from the resultant EV, and
   assumed 50.1% of this resultant value corresponding to the
   proportion of GEMS shares that would be pledged to the
   noteholders.
- The waterfall results in a recovery of over 100% for the
   noteholders of the USD150 million issuance. However, Fitch
   applies a soft cap of 'RR4' for the Recovery Rating of GEAR,
   given that most of its businesses are located in Indonesia, a
   Group D country. Fitch consequently rates the senior unsecured
   US dollar notes at 'B+'.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Fitch may consider upgrading the ratings of GEAR and GEMS if
   GEMS is able to increase its sustainable production volume to
   over 30 million tonnes per annum, while GEAR is able to
   maintain adjusted EBITDA of USD150 million, based on a
   proportionate consolidation of GEMS, and adjusted net
   debt/EBITDA of less than 2.0x.

Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- A failure to ramp up production volume to Fitch expectations.

LIQUIDITY

Robust Liquidity at GEMS: Liquidity at GEMS is robust, with
healthy cash generation, low debt levels and long drawn-out
maturities. As at September 2017, GEMS had USD55 million of debt,
including a USD48 million seven-year loan with gradual maturities
until 2024. Debt balances at GEMS are likely to increase by about
USD60 million if its acquisition of BSL is successful. Fitch
expect internal cash generation at GEMS to be more than
sufficient to fund Fitch expected capex for its production
increase and to meet its debt repayment obligations. Fitch expect
the majority of cash flow after capex to be paid out as dividends
as stipulated in its shareholder agreement.

GEMS also has the flexibility to borrow up to USD240 million from
its existing banking facilities under the terms of the US dollar
notes. While this provides GEMS with additional liquidity, any
significant increase in GEMS's debt may result in a subordination
of GEAR's debt and consequently impact GEAR's rating.

Dividends Support GEAR's Liquidity: As at September 2017, GEAR
did not carry debt on a standalone basis. It added USD50 million
of debt in 4Q17 to fund its acquisition of a 10% stake in
Westgold Resources Limited. The USD150 million GEAR raised
through the senior unsecured notes will be used to refinance the
USD50 million loan, while the remainder will go towards general
corporate purposes and fund potential acquisitions. GEAR's
liquidity would, however, depend on the dividends from GEMS,
which remain its main source of cash inflows. GEAR does not
expect to add any debt after the bond issuance. GEAR's liquidity
is supported by strong dividend inflows, which would be used to
service its debt obligations.



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


GM KOREA: Tension Escalates Over S. Korea Government Inspection
---------------------------------------------------------------
The Korea Herald reports that tension is escalating over the
South Korean government's inspection into GM Korea Co, following
the automaker's decision to shut down a factory two weeks ago.

According to the report, state-run Korea Development Bank, the
second-biggest stockholder of the local unit with 17.02 percent
shares, is currently looking into GM Korea's management,
including high-interest loans levied by the US headquarters. The
Korea Herald relates that the country's financial watchdog
Financial Supervisory Service is examining GM Korea's research
and development expenses, which has been a source of debates by
exceeding the company's operating loss in amount.

"Korea Development Bank-led inspection has been going on for a
while. But the problem is GM's lack of cooperation. When the
government asks for detailed documents or confirmation, it has
backed off citing business confidentiality," the report quotes
Lee Hang-koo, a senior researcher at the Korea Institute for
Industrial Economics & Trade, as saying.

"GM has a history of existing from Australia after the government
stopped supporting the company. It is up to the local government
to put on a poker face and make it clear that US headquarters is
also responsible for GM Korea's status quo."

Based on its plans to focus on profitable markets such as the US
and China, GM has been carrying out restructuring efforts on a
global scale, withdrawing from less profitable countries and
selling underperforming brands since 2013, the report notes.

As its first step for restructuring here, GM Korea finalized the
suspension of its plant in Gunsan, North Jeolla Province, where
productions had dropped below 20 percent, by May, according to
the Korea Herald.

The latest move sent jitters across the country of a possible
Korea-exodus, which would leave a total 156,000 workers of GM
Korea and subcontractors at stake, the Korea Herald discloses
citing data from the Ministry of Trade, Industry and Energy.

The report says authorities are investigating GM Korea's
financial records as high expenses on research and development
had sparked doubts over GM's efforts to save the falling local
unit.

GM Korea spent KRW614.1 billion ($575.5 million) on research and
development, more than its operating losses of KRW521.9 billion
in 2016, according to the FSS, the report relays.

Higher than market average interest rates GM headquarters levied
to the local unit is also up for inspection, the report says.

The report adds that GM Korea's interest payments totaled
KRW462 billion between 2013 and 2016, due to the 5 percent annual
interest rate on the KRW2.4 trillion it borrowed from
headquarters in 2013. This is about two times the market average
interest rate.

According to report, GM Korea said local banks had refused to
make loans to the automaker due to its low credit rating.

In terms of GM Korea's exports, the rate of cost to selling
price, which reached as high as 97 percent in 2015, is also
debated, the report says. Critics point out that GM Korea
delivered complete knock down vehicles at a price close to
production cost to its overseas affiliates, which has led to the
automaker's ratio of cost to selling price reaching over 90
percent, according to the Korea Herald.

GM Korea's rate of cost to selling price jump has remained above
90 percent since 2009, which is about 10 percent higher than the
market average of 80.1 percent, according to a lawmaker Ji Sang-
wook from the Bareun Party, the Korea Herald relays.

GM Korea sold 524,547 units -- 132,377 units here and 392,170
units overseas -- last year, down 12.2 percent on-year, the
company said.

The FSS said GM Korea's net losses rose to KRW631.5 billion in
2016 from KRW333.2 billion in 2014, the report adds.

GM Korea Co. is the South Korean unit of General Motors Co.




                             *********

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

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

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


                            *********


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

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

Copyright 2018.  All rights reserved.  ISSN: 1520-9482.

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

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



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