/raid1/www/Hosts/bankrupt/TCRAP_Public/200224.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 24, 2020, Vol. 23, No. 39

                           Headlines



A U S T R A L I A

ALITA RESOURCES: SGX Does not Oppose Proposed Delisting
DAVID JONES: To Axe Smaller Stores in Bid to Stay Afloat
HOANG LONG: Second Creditors' Meeting Set for March 2
HORIZON GLOBAL: T. Rowe Price Has 18.5% Stake as of Dec. 31
ISHKA: First Creditors' Meeting Set for March 3

KELLOGG BROWN: S&P Assigns BB+ Rating to $110MM Term Loan A-1
MADE GROUP: Likely to Placed Into Liquidation
NOBLE METALS: Second Creditors' Meeting Set for March 3
RAPID SECURITIES: Second Creditors' Meeting Set for March 2


C H I N A

GOME RETAIL: S&P Places 'B+' LT ICR on CreditWatch Negative
LVGEM REAL ESTATE: Fitch Rates Proposed USD Sr. Notes B
MODERN LAND: Moody's Assings B3 Rating to New USD Notes
YANZHOU COAL: Moody's Upgrades CFR to Ba1, Outlook Stable


H O N G   K O N G

BANK OF COMMUNICATIONS: Fitch Rates New AT1 Securities BB+(EXP)


I N D I A

ASUTI TRADING: CARE Maintains D Rating on INR115cr ST Loan
AYURWIN PHARMA: Insolvency Resolution Process Case Summary
B.J. GRAINS: CARE Maintains 'D' Rating in Not Cooperating
BANSAL FINTRADE: Insolvency Resolution Process Case Summary
BHAGAT JEE: CARE Maintains 'D' Rating in Not Cooperating

CHAITANYA EDUCATIONAL: CARE Reaffirms D Rating on INR9.96cr Loan
CHINTTPURNI ENGINEERING: Insolvency Resolution Case Summary
D S CONTRACTORS: CARE Maintains D Rating in Not Cooperating
DECCAN AUTO: CARE Maintains 'D' Rating in Not Cooperating
DEWAN HOUSING: Reports INR934.35cr Net Profit in Q3 Ended Dec. 31

DEX AGRO: Ind-Ra Migrates BB LT Issuer Rating to Non-Cooperating
FORTUNE INFRAHEIGHT: Insolvency Resolution Process Case Summary
G V AUDIO: CARE Cuts INR7.50cr LT Loan Rating to 'D', Not Coop.
GOODWIN JEWELLERS: Ind-Ra Moves D Issuer Rating to Non-Cooperating
GUJARAT STEEL: CARE Maintains 'D' Rating in Not Cooperating

H.L. TECH FABRICS: Insolvency Resolution Process Case Summary
HMT MACHINE: CARE Reaffirms 'C' Rating on INR49.82cr LT Loan
IDEA INFINITY: Ind-Ra Hikes Issuer Rating to BB+, Outlook Positive
INDIA INFOLINE: Fitch Assigns Final BB- Rating on $400MM Notes
INDIA: Struggles to Revive Credit Growth as Economy Stumbles

LATHA RICE: CARE Maintains D Rating in Not Cooperating Category
MANDEEP INDUSTRIES: CARE Lowers Rating on INR44.09cr Loan to D
MUTHOOT FINANCE: Fitch Rates New US$ Sr. Sec. Notes BB+(EXP)
MUTHOOT FINANCE: S&P Assigns 'BB' Rating to New USD Sr. Sec. Notes
RAM HARI AUTO'S: Insolvency Resolution Process Case Summary

RAM HARI CARS: Insolvency Resolution Process Case Summary
RAM HARI MOTORS: Insolvency Resolution Process Case Summary
RP TELEBUY SKYSHOP: Insolvency Resolution Process Case Summary
SAINATH AUTOLINKS: Ind-Ra Migrates BB- Rating to Non-Cooperating
SD MILK: CARE Lowers Rating on INR7.25cr LT Loan to 'D'

SEBACIC INDIA: CARE Reaffirms D Rating on INR15.93cr Loan
SETCO AUTOMOTIVE: CARE Lowers Rating on INR257.18cr Loan to C
SHREE RAJASTHAN: CARE Reaffirms 'D' Rating on INR92.10cr Loan
SHRI KEDARESHWAR: CARE Maintains 'D' Rating in Not Cooperating
SHRIMATI NARASAMMA: CARE Maintains D Rating in Not Cooperating

SPRING FIELD: Insolvency Resolution Process Case Summary
SRI VENKATA: CARE Cuts Rating INR6.36cr LT Loan to B+, Not Coop.
VEDIK ISPAT: CARE Lowers Rating on INR85.39cr LT Loan to 'D'
VERTEX SAFETY: Insolvency Resolution Process Case Summary
VODAFONE IDEA: Ind-Ra Lowers Long Term Issuer Rating to 'B'



J A P A N

JAPAN: Still Sees Economy Recovering Despite Recession Forecasts


S R I   L A N K A

NATIONAL PAPER: Cabinet Invalidates Decision to Liquidate

                           - - - - -


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

ALITA RESOURCES: SGX Does not Oppose Proposed Delisting
-------------------------------------------------------
Rachel Mui at The Business Times reports that Alita Resources,
formerly known as Alliance Mineral Assets, on Feb. 20 said the
Singapore Exchange had on Feb. 18 noted that it "has no objections
to the proposed delisting" of the company.

Among other things, Alita need not convene a general meeting to
obtain shareholder approval for the delisting, nor provide an exit
offer to shareholders, the report says. This is because an
application has been made in the Australian court to transfer 100
per cent of the shares in Alita to a related entity of China
Hydrogen Energy (CHE) for nil consideration, BT relates.

Last month, BT reported that Alita was pursuing a restructuring in
Australia, after accepting a binding AUD70 million (SGD64.9
million) loan facility from CHE. CHE has put forward a deed of
company arrangement to acquire Alita's assets, though little is
known about CHE, except that it is a special-purpose vehicle for a
Chinese party, the report states.

According to BT, shareholders of Alita will see their investments
go to zero, and about 100 of them are said to be fighting the
takeover of their shares by the Chinese entity. One big question is
whether Alita's board of directors may have breached
continuous-disclosure requirements in the months before the firm
ran out of cash.

In a regulatory filing on Feb. 20, Alita added that it will provide
updates on the date and timing of the delisting in due course.

According to the Singapore bourse's requirements, the deed
administrators are also making arrangements for an information
session with shareholders and will provide further details in due
course through an announcement, the company, as cited by BT, said.


Alita shares have been suspended from trading since last August,
after a collapse in prices for the battery commodity forced the
firm to default on a AUD40 million loan from its secured lenders,
BT notes.

                         About Alita Resources

Alita Resources Limited operates as a mineral exploration and
excavation company. The Company explores and produces lithium and
tantalum concentrates. Alita Resources offers its services in
Australia.

John Bumbak of Kordamentha was appointed as administrator of Alita
Resources, et al. on Aug. 28, 2019.

In December 2019, the company's creditors approved a deed of
company arrangement (DOCA) proposed by China Hydrogen Energy and
its subsidiary Liatam Mining for the acquisition of Alita's
assets.

DAVID JONES: To Axe Smaller Stores in Bid to Stay Afloat
--------------------------------------------------------
9News reports that the struggle for Aussie retailers is growing
tougher and now even department store giant David Jones is feeling
the heat.

9News says the company has announced plans to axe its smaller
stores and focus on big city locations in a bid to stay afloat.

For almost two centuries, David Jones has worn the department store
crown. It was the place to go, for all your high-end shopping
needs. But DJ's as we know it is all about to change.

"Anything that is unprofitable for them that's where they are going
to look at either reducing their floor space or removing the store
altogether," Australian Retailers Association Russell Zimmerman
told 9News.

Figures show operating profits for David Jones fell 57 per cent to
just $20 million dollars late last year. It's hoped the axing of
several store locations will help claw the money back, along with a
shift towards quality over quantity, 9News relates.

"Fewer stores, more online, more boutique. More top end, but really
lovely merchandise. So yes, it will just be a different David
Jones," NextGen Group's Neil Rechlin told 9News.

David Jones won't specify exactly how many stores will shut up shop
but says overall floor space will be axed by 20 per cent in the
next five years, according to 9News.

"Change is inevitable we need to embrace that change and enjoy the
David Jones of the future," the report quotes Mr. Rechlin as
saying.

9News notes that David Jones isn't the only major retailer feeling
the heat, long-time rival Myer recently axed its third Sydney store
in less than five weeks. It was the end of an era for Myer Hornsby
after four decades.

Harris Scarf is also among those suffering -- falling into
receivership last December as the shift to online shopping
continues to rise, 9News says.

HOANG LONG: Second Creditors' Meeting Set for March 2
-----------------------------------------------------
A second meeting of creditors in the proceedings of Hoang Long
Investments Pty Ltd as Trustee for the Pham & Le Family Trust has
been set for March 2, 2020, at 11:30 a.m. at the offices of
Hamilton Murphy Advisory Pty Ltd, Level 1, at 255 Mary Street, in
Richmond, Victoria.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 28, 2020, at 4:00 p.m.

Stephen Robert Dixon of Hamilton Murphy was appointed as
administrator of Hoang Long on Jan. 24, 2020.

HORIZON GLOBAL: T. Rowe Price Has 18.5% Stake as of Dec. 31
-----------------------------------------------------------
T. Rowe Price Associates, Inc., disclosed in an amended Schedule
13G filed with the Securities and Exchange Commission that as of
Dec. 31, 2019, it beneficially owns 4,697,027 shares of common
stock of Horizon Global Corp, which represents 18.5 percent of the
shares outstanding. T. Rowe Price Small-Cap Value Fund, Inc. also
reported beneficial ownership of 3,579,190 Common Shares. A
full-text copy of the regulatory filing is available for free at:

                        https://is.gd/eo1myE

                        About Horizon Global

Horizon Global -- http://www.horizonglobal.com/-- is a designer,
manufacturer, and distributor of a wide variety of
custom-engineered towing, trailering, cargo management and other
related accessory products in North America, Australia and Europe.
The Company serves OEMs, retailers, dealer networks and the end
consumer.

Horizon Global reported net losses of $204.9 million in 2018, $4.77
million in 2017, and $12.66 million in 2016. As of Sept. 30, 2019,
Horizon Global had $466 million in total assets, $427.25 million in
total liabilities, and $38.75 million in total shareholders'
equity.

                               * * *

As reported by the TCR on Dec. 16, 2019, S&P Global Ratings
affirmed the 'CCC' issuer credit rating on Horizon Global Corp. and
revised the outlook to negative from developing. The outlook
revision to negative reflects S&P's view that despite recent debt
reduction and temporary improvement in liquidity, Horizon's credit
metrics and liquidity remain quite weak and could worsen as the
rating agency expects the company to generate negative free flow.

As reported by the TCR on June 18, 2019, Moody's Investors Service
downgraded Horizon Global Corporation's Corporate Family Rating to
C from Caa3. The downgrade reflects Moody's expectations that
modest earnings improvement will not be sufficient to reduce
leverage to a sustainable level and that the sale of the
Asia-Pacific segment will, while reducing secured leverage,
increase total leverage and create greater reliance on a quick
turnaround in the more weakly performing U.S. and European
operations to diminish restructuring risk.

ISHKA: First Creditors' Meeting Set for March 3
-----------------------------------------------
A first meeting of the creditors in the proceedings of Michael
Sklovsky Pty Ltd, trading as ISHKA, will be held on March 3, 2020,
at 11:00 a.m. at the offices of Chartered Accountants Australia and
New Zealand, Level 18, at 600 Bourke Street, in Melbourne,
Victoria.  

Rachel Elizabeth Baker and Barry Wight of Cor Cordis were appointed
as administrators of Michael Sklovsky on Feb. 20, 2020.

KELLOGG BROWN: S&P Assigns BB+ Rating to $110MM Term Loan A-1
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '3'
recovery rating to KBR Inc.'s new first-lien credit facility, which
will comprise a $500 million revolver, a $500 million performance
letter of credit facility, a $165 million term loan A-2 due 2025,
and a $520 million term loan B due 2027. The '3' recovery rating
indicates S&P's expectation for meaningful (50%-70%; rounded
estimate: 60%) recovery.

At the same time, S&P assigned its 'BB+' issue-level rating and '1'
recovery rating to the $110 million term loan A-1 due 2025 held at
KBR's Australian subsidiary Kellogg Brown & Root Pty Ltd. (KBR
Australia). The '1' recovery rating indicates S&P's expectation for
very high (90%-100%; rounded estimate: 95%) recovery.

"The company plans to use the proceeds from the new debt to
refinance and pay down its existing credit facility. Although the
transaction will reduce KBR's balance sheet debt and interest
expense, we do not believe it will materially affect our expected
credit ratios," S&P said.

S&P's issuer credit rating on KBR (BB-/Stable/--) is unchanged and
reflects the company's mix of government services and engineering
and construction work, stable margins, and stated leverage target
of 2.75x. The rating agency expects the company to maintain debt to
EBITDA in the 2.4x-2.8x over the long term, with funds from
operations (FFO) to debt between 28%-30%.

ISSUE RATINGS--RECOVERY ANALYSIS

Key analytical factors

-- Pro forma for the proposed transaction, the company's capital
structure will comprise a $500 million revolver, a $500 million
letter of credit facility, a $165 million term loan A-2, a $520
million term loan B, $350 million of unsecured convertible notes
issued by KBR (unrated), and a $110 million term loan A-1 issued by
KBR Australia.

-- S&P expects greater recovery for the debt held at KBR Australia
because it has a priority claim on all of the collateral from the
company's Australian assets and is guaranteed by KBR.

-- S&P valued the company on a going-concern basis using a 5x
multiple of its projected emergence EBITDA. The 5x multiple is in
line with the multiples it uses for KBR's peers.

-- Other key assumptions at default include LIBOR of 2.5%, the
revolver is 85% drawn, and the letter of credit facility is 80%
utilized (with 20% of those drawn).

Simulated default assumptions

-- Default year: 2024
-- EBITDA at emergence: $205 million
-- Multiple: 5x

Simplified waterfall
-- Net enterprise value after administrative expenses (5%): $878
million
-- Valuation split (U.S./Australia): 60%/40%
-- Value available for Australia secured debt claims: $295
million
-- Australia secured debt claims: $97 million
-- Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Value available for U.S. secured debt claims: $712 million
-- U.S. secured debt claims: $1.16 billion
-- Recovery expectations: 50%-70% (rounded estimate: 60%)

Ratings List

KBR Inc.
Issuer Credit Rating                        BB-/Stable/--

New Rating

KBR Inc.
Senior Secured
US$165 mil term A-2 bank ln due 2025         BB
  Recovery Rating                             3(60%)
US$500 mil LOC bank ln due 2025              BB
  Recovery Rating                             3(60%)
US$500 mil multicurrency bank ln due 2025    BB
  Recovery Rating                             3(60%)
US$520 mil term B bank ln due 2027           BB
  Recovery Rating                             3(60%)

Kellog Brown & Root Pty Ltd.
Senior Secured
AUD165 mil term A-1 bank ln due 2025         BB+
  Recovery Rating 1(95%)

MADE GROUP: Likely to Placed Into Liquidation
---------------------------------------------
The Mercury reports that George Calombaris' collapsed food empire
is likely to be placed into liquidation before a second creditors'
meeting next month.

About 80 creditors attended an almost two hour-long meeting on on
Feb. 20 with administrators of the 12 venues the celebrity chef put
in their hands last week.

According to the report, KordaMentha administrator Craig Shepard
said a report on MadE Group's affairs will be released on March 10
and the next creditor's meeting will be on March 17.

The second sale of assets of Calombaris' former venues was also
announced on Feb. 20, the report relates.

The Mercury says the original Jimmy Grants premises at Fitzroy and
the Jimmy Grants at Emporium in Melbourne CBD were sold to an
existing CBD operator with decades of hospitality experience and a
background in Greek cuisine.

These sales followed the asset sales and new lease transfers signed
on Feb. 20 for Calombaris' Hellenic Republic restaurants in
Brunswick and Brighton and his Vita Ristorante in Kew.

Seven of the 12 Calombaris venues that stopped trading two weeks
ago remain to be sold, the report notes.

The Mercury says the purchasers of two of the venues sold on Feb.
19 were planning to contact former employees of the two restaurants
to discuss new job opportunities.

The Victorian Trades Hall Council and the Migrant Workers Centre on
Feb. 20 called for employees caught up in the collapse to be paid
their entitlements, the report notes.

The Mercury adds that KordaMentha said they will assist former
employees to access the Fair Entitlements Guarantee scheme for any
unpaid entitlements upon liquidation.

NOBLE METALS: Second Creditors' Meeting Set for March 3
-------------------------------------------------------
A second meeting of creditors in the proceedings of Noble Metals
Limited has been set for March 3, 2020, at 10:30 a.m. at the
offices of BRI Ferrier Western Australia, Level 1, at 99-101
Francis Street, in Northbridge, WA.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 28, 2020, at 4:00 p.m.

Giovanni Maurizio Carrello and Shaun William Boyle of BRI Ferrier
Western Australia were appointed as administrators of Noble Metals
on Jan. 24, 2020.

RAPID SECURITIES: Second Creditors' Meeting Set for March 2
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Rapid
Securities Limited has been set for March 2, 2020, at 10:00 a.m. at
the offices of Deloitte Financial Advisory Pty Ltd, Level 23,
Riverside Centre, at 123 Eagle Street, in Brisbane, Queensland.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 25, 2020, at 4:00 p.m.

Jason Tracy, Timothy Heenan & Glen Kanevsky of Deloitte Financial
Advisory were appointed as administrators of Rapid Securities on
Jan. 24, 2020.



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

GOME RETAIL: S&P Places 'B+' LT ICR on CreditWatch Negative
-----------------------------------------------------------
On Feb. 20, 2020, S&P Global Ratings placed its 'B+' long-term
issuer credit rating on GOME Retail and the 'B' long-term issue
rating on the company's senior unsecured notes on CreditWatch with
negative implications.

S&P said, "The CreditWatch placement reflects our view that GOME's
key credit measures could weaken beyond our threshold for the
rating if the coronavirus outbreak lowers the company's
profitability or lasts into the third quarter of 2020.

"We expect a decline in offline retail sales in China in the first
quarter of 2020, given weak sentiment and the increasing popularity
of online retailers amid contagion fears. Our base case assumption
is that the coronavirus infection rate will peak by March 2020."
However, the negative impact on consumer sales and sentiment will
likely last into the third quarter. As the coronavirus impact
stabilizes, consumption may rebound in the second half of 2020 due
to deferred spending.

In S&P's opinion, GOME's competitive position is weakening as
e-commerce becomes a mainstream channel for sale of electrical
appliances. For the first time in China, online sales accounted for
more than 40% of home appliance sales in June 2019. GOME's
operating performance has been under pressure even before the virus
break-out, with its online market share at less than 3%. As of June
30, 2019, GOME's overall market share decreased to about 6%, from
9% a year ago.

GOME's financial cushion may not be sufficient under the negative
impact of the coronavirus outbreak. The company's revenue growth
could turn negative in 2020 as consumers hold on to purchases of
big-ticket electronic appliances. S&P said, "We believe GOME's
sales could decline severely in February 2020. We expect another
significant decline in March and a moderate decline in the second
quarter."

GOME may not be able to sustain its debt-to-EBITDA ratio below 5.5x
this year, given increased uncertainty over the operating expense
ratio. The company is seeking concessions in rent, labor costs,
tax, and several expenses. GOME could maintain its debt leverage at
current levels if it can get waiver on rent payments for more than
three months. Rent is a major component of the company's operating
expenses. S&P currently does not have sufficient information to
assess whether the company will be able to do so.

S&P said, "We believe GOME has adequate cash for its overseas bond
repayment in March 2020. The company had close to Chinese renminbi
10 billion in cash at hand at the end of 2019.

"However, we see low cash inflows during the epidemic as a weakness
for GOME. The company may face liquidity risk if the coronavirus
impact does not stabilize by the end of the first quarter.

"We aim to resolve the CreditWatch within the next three months
once we have more information about the severity and longevity of
the coronavirus outbreak to assess its impact on GOME's operations.
We will also assess GOME's competitive position amid the
accelerating trend of online retailers grabbing market share from
traditional retailers.

"We could lower the rating if GOME's debt-to-EBITDA ratio exceeds
5.5x. This may happen if the company is not able to get at least
three months of rent waiver, or if the coronavirus impact lasts
longer than our expectation.

"We could affirm the ratings on GOME if we believe the impact from
the epidemic is temporary and the operating performance of GOME
will recover quickly such that the debt-to-EBITDA ratio stays below
5.5x."


LVGEM REAL ESTATE: Fitch Rates Proposed USD Sr. Notes B
-------------------------------------------------------
Fitch Ratings assigned LVGEM Real Estate Investment Company
Limited's (B/Stable) proposed US dollar senior notes a 'B' rating
with a Recovery Rating of 'RR4'. The notes will be issued by
LVGEM's wholly owned subsidiary, Gemstones International Limited,
and will be unconditionally and irrevocably guaranteed by LVGEM.
The new bond issuance is concurrent with the exchange offer for the
senior unsecured notes due in August 2020.

LVGEM's ratings are supported by its high-margin urban
redevelopment projects in Shenzhen and its portfolio of quality
investment properties, including its centrally located NEO Tower
office buildings in Shenzhen and Hong Kong. LVGEM's recurring
EBITDA/gross interest paid was 0.38x at end-2018, higher than most
of its 'B' rated peers. LVGEM also expects its controlling
shareholder, Mr Wong Hong King, to inject around 12 million sq m in
urban redevelopment projects in the Greater Bay Area into the
company gradually in the next few years.

LVGEM's ratings are constrained by its small and fluctuating
contracted sales, geographical concentration and high leverage. The
company's high geographical concentration is in several projects in
Shenzhen and Zhuhai and this may result in fluctuation in its
contracted sales. We estimate LVGEM's leverage, measured by net
debt/adjusted inventory, increased to 55% by end-2019 (54% in 2018
and 48% in 2017) due to the injection of urban redevelopment
projects from LVGEM's largest shareholder.

KEY RATING DRIVERS

Leverage Remains High: Fitch expects LVGEM's leverage, measured by
net debt/adjusted inventory, to remain high at 50%-55% in 2019-2020
after the injection of urban redevelopment projects in Shenzhen and
Zhuhai and the acquisition of a Hong Kong office building. We think
LVGEM's CNY2.8 billion investment in the Zhuhai Joyful Town
project, the large-scale investment in Shenzhen's Baishizhou
project and the HK NEO Office Tower will continue to pressure
LVGEM's leverage if it does not generate sufficient sales in the
same period.

Volatile Contracted Sales, High Margins: LVGEM had contracted sales
of CNY6.28 billion in 2018, broadly in line with our forecast of
CNY6.0 billion. Projects in Shenzhen, including LVGEM Mangrove Bay
No. 1, contributed to the contracted sales. Fitch estimates LVGEM
generated CNY4.9 billion of contracted sales in 2019 from projects
in Shenzhen, Maoming and Zhuhai, after the company reported
contracted sales of CNY4 billion in 1H19 and met its 2019 sales
target and subsequently slowed its contracted sales in 2H19, while
gradually pushing for urban redevelopment projects in Shenzhen and
Zhuhai.

We estimate the company's EBITDA margin reached 50% in 2019 (2018:
48.8%) due to the recognition of revenue and profit from
high-margin urban redevelopment projects in Shenzhen, including
LVGEM Hongwan and LVGEM Mangrove Bay No. 1. Nonetheless, the EBITDA
margin may drop to 39%-48% in 2020-2021 when LVGEM starts to book
its Zhuhai projects, which have lower gross margins than the
Shenzhen projects.

Quality Investment-Property Portfolio: LVGEM's investment-property
portfolio includes HK NEO Office, which started leasing in June
2018, the Shenzhen NEO complex, which has office and retail
components, three Zoll community retail centres in Shenzhen and two
Zoll malls in Suzhou. HK NEO Office started to contribute rental
income in 2H19 and the company estimated occupancy of up to 60% by
end-2019, with anchor tenants including FT Life, a Hong Kong
insurance company. The almost fully occupied Shenzhen NEO complex,
in the city's central business district, generated more than CNY330
million in rental income in 2018. The three Zoll centres had
above-95% occupancy rates and positive rental reversion in 2018.

Stabilising Recurring EBITDA Interest Coverage: Fitch estimates
LVGEM continued to generate strong recurring EBITDA of above CNY600
million in 2019 (CNY543 million in 2018) from rentals at its
investment-property, hotel and property-management businesses.
However, Fitch estimates recurring EBITDA/interest coverage dropped
to 0.31x in 2019, from 0.38x in 2018, due to higher total debt and
hence higher interest expense, and we project the ratio will stay
around 0.32x-0.34x in 2020-2022.

DERIVATION SUMMARY

LVGEM's ratings are supported by its portfolio of quality
investment properties, including its well-located Shenzhen and Hong
Kong NEO Tower office buildings. Fitch assesses LVGEM's investment
properties alone as having a business profile of around 'BB', with
more than CNY500 million in rental EBITDA a year and CNY22 billion
in rental-deriving assets, setting the company apart from most
Chinese homebuilders that rely on sales of more risky development
properties to service their debt. This is comparable with Lai Fung
Holdings Limited's (BB-/Stable) USD60 million in recurring EBITDA
and USD2.0 billion investment-property value.

LVGEM's main business focus remains on its urban redevelopment
projects in Shenzhen. Its contracted sales are smaller and more
volatile than most peers due to the uncertain timing of project
injections from its ultimate shareholder. Fitch also expects
LVGEM's leverage, measured by net debt to adjusted inventory, to
remain above 50% in 2019-2020 on project injections and
construction spending on urban redevelopment projects.

LVGEM's leverage is lower than that of Kaisa Group Holdings Limited
(B/Stable), which is above 70%, as Kaisa focuses on urban
redevelopment projects in Shenzhen with a much larger business
scale. LVGEM's leverage is at a similar level to that of Modern
Land (China) Co., Limited (B/Stable), as the latter has higher
contracted sales of CNY20 billion, a lower EBITDA margin of 12%-13%
(LVGEM 50%) and a shorter land-bank life. LVGEM's leverage is
higher than that of Fantasia Holdings Group Co., Limited
(B+/Stable) but it has a much smaller business scale. Fantasia is
more geographically diversified, although both companies focus on
urban redevelopment projects in Shenzhen and the Guangdong Greater
Bay Area.

KEY ASSUMPTIONS

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

  - A gradual injection of a large urban redevelopment project in
Shenzhen from late 2019, with LVGEM financing the purchase from the
controlling shareholder mainly via shareholder loans and banking
facilities.

  - Contracted sales of CNY4.9 billion in 2019 and CNY10.6 billion
in 2020 (CNY6.3 billion in 2018)

  - Recurring EBITDA to reach CNY600 million-800 million in
2019-2020

KEY RECOVERY RATING ASSUMPTIONS

  - The recovery analysis assumes LVGEM would be liquidated in a
bankruptcy because it is an asset-trading company.

  - We have assumed a 10% administrative claim.

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

  - We applied an advance rate of 80% on its adjusted inventory due
to its high EBITDA margin (above 30%) for its development-property
inventory.

  - Investment property/property, plant and equipment advance rate
at 60%, investment property yield of 2.4%. Good quality
investment-property portfolio in Shenzhen and Hong Kong.

  - We also assumed LVGEM will be able to use 100% of the CNY3.9
billion in restricted cash to pay debt.

RATING SENSITIVITIES

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

  - Attributable contracted sales sustained above CNY10 billion
while net debt/adjusted inventory is sustained below 45%

  - Recurring EBITDA/cash interest sustained above 0.3x

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

  - Net debt/adjusted inventory above 55% for a sustained period

  - Failure to maintain a project pipeline (including controlling
shareholder's land bank) sufficient for two years of development

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: LVGEM had interest-bearing debt of CNY24
billion as of June 2019, with short-term debt of CNY3.7 billion. It
had available cash of CNY5.8 billion and restricted cash of CNY3.3
billion, enough to repay short-term debt. The company had CNY19.3
billion of credit facilities, with CNY2.6 billion unused. The
company has obtained adequate credit facilities to finance various
urban redevelopment projects in Shenzhen and Zhuhai.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on LVGEM, either due
to their nature or the way in which they are being managed by the
company.

MODERN LAND: Moody's Assings B3 Rating to New USD Notes
-------------------------------------------------------
Moody's Investors Service assigned a B3 senior unsecured debt
rating to Modern Land (China) Co., Limited's (B2 stable) proposed
USD notes.

The company plans to use the notes' proceeds to refinance its
existing indebtedness.

RATINGS RATIONALE

"The proposed bond issuance, if completed, will have limited impact
on Modern Land's credit profile, given that the proceeds will
mainly be used to refinance the company's existing debt," says
Celine Yang, a Moody's Assistant Vice President and Analyst.

Moody's expects Modern Land's debt leverage -- as measured by
revenue/adjusted debt -- to weaken to around 55% over the next
12-18 months from 69% for the 12 months ended June 2019, because
its debt growth will likely outpace revenue growth to fund land
acquisitions. Meanwhile, the company's EBIT/interest will likely
weaken slightly to around 2.0x over the next 12-18 months from 2.2x
for the 12 months ended June 2019.

Modern Land's total contracted sales fell slightly to RMB2.0
billion in January 2020 from RMB2.1 billion in January 2019,
reflecting the impact of the Chinese New Year festival and the
outbreak of the coronavirus. Although the company's sales are
likely to stay weak in 1Q 2020 because of the outbreak, Moody's
expects sales will recover through the remainder of 2020, keeping
total contracted sales growth at a level similar to that achieved
in 2019. Moody's will continue to monitor developments and evaluate
the credit impact if the disruption is prolonged.

Modern Land's B2 corporate family rating (CFR) reflects the
company's (1) niche in marketing and selling eco-friendly homes;
(2) track record of consistently growing its contracted sales; and
(3) adequate liquidity.

At the same time, Modern Land's CFR is constrained by its low gross
profit margin when compared to its peers, as well as its weak
interest coverage, a result of its debt-funded growth and high
financing costs.

In terms of governance considerations, Moody's has taken into
consideration the concentrated ownership by Modern Land's founder
and chairperson, Zhang Lei, who held an approximate 66.3% stake in
the company as of June 2019.

Such concentrated ownership is counterbalanced by the company's
established governance structures and standards as required by the
relevant code for companies listed on the Hong Kong Stock Exchange.
Furthermore, the company has three special committees in place, an
audit committee, remuneration committee and nomination committee,
two of which are chaired and dominated by the company's independent
nonexecutive directors.

Modern Land's liquidity is adequate. Moody's expects the company's
cash holdings and operating cash flow to be sufficient to cover its
dividend payments, maturing debt and committed land payments over
the next 12-18 months. As of June 2019, the company's cash balance
of RMB10.4 billion (including restricted cash) covered 139% of its
short-term debt of RMB7.4 billion as of the same date.

Modern Land's B3 senior unsecured debt rating is one notch lower
than the company's B2 CFR due to structural subordination risk.
This risk reflects the fact that the majority of claims are at the
operating subsidiaries and have priority over Modern Land's senior
unsecured claims in a bankruptcy scenario. In addition, the holding
company lacks significant mitigating factors for structural
subordination. As a result, the likely recovery rate for claims at
the holding company will be lower.

The stable outlook reflects Moody's expectation that Modern Land
will maintain adequate liquidity and grow its sales as planned over
the next 12-18 months.

Moody's could upgrade Modern Land's ratings if the company
establishes a track record of (1) growing its scale and
establishing its brand in new locations outside its home market;
(2) maintaining a reasonable cash balance, such that
cash/short-term debt stays above 1.5x on a sustained basis; and (3)
strong financial discipline in its land acquisitions, with
homebuilding EBIT/interest coverage above 2.5x-3.0x and
revenue/adjusted debt above 70%-75% on a sustained basis.

Moody's could downgrade Modern Land's ratings if (1) the company's
liquidity and ability to generate operating cash fall below Moody's
expectations because of declining contracted sales and aggressive
land acquisitions; (2) the company's prices decline and its revenue
recognition is slower than expected, or its profit margins decline
further, leading to further weakness in its interest coverage and
financial flexibility; or (3) the company engages in material
debt-funded acquisitions.

Metrics indicative of a potential downgrade include Modern Land's
balance-sheet cash, both restricted and unrestricted, falling below
100% of short-term debt or the company's homebuilding EBIT/interest
coverage weakening below 1.5x on a sustained basis.

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

YANZHOU COAL: Moody's Upgrades CFR to Ba1, Outlook Stable
---------------------------------------------------------
Moody's Investors Service upgraded Yanzhou Coal Mining Company
Limited's corporate family rating to Ba1 from Ba2.

At the same time, Moody's has upgraded to Ba1 from Ba2 the backed
senior unsecured debt rating on the bond issued by Yancoal
International Resources Development Co., Limited and guaranteed by
Yanzhou Coal.

The outlook is stable.

RATINGS RATIONALE

The upgrade primarily reflects Yanzhou Coal's improved operating
performance and financial profile, and its expectation that the
company will sustain these improvements

The upgrade also reflects the improved credit profile of its
parent, Yankuang Group Corporation Limited (Ba1, Stable).

Yanzhou Coal's Ba1 rating continues to incorporate a two-notch
uplift based on parental support from Yankuang. Moody's considers
the credit profiles of Yanzhou Coal and Yankuang as closely linked,
given the fact that Yanzhou Coal is Yankuang's flagship subsidiary,
accounting for 64% and 74% of its total assets and revenue at the
end of September 2019.

The rating uplift also considers the importance of Yanzhou Coal's
mining assets to Yankuang and ultimately to the Shandong Provincial
Government, in terms of economic contributions and employment to
the province.

The improvement in Yankuang's and Yanzhou Coal's performances was
driven by (1) improved conditions in China's coal sector as the
government continues its supply-side reforms, (2) improvements at
the Australian subsidiary, and (3) low production costs at both the
Chinese and Australian operations.

While Moody's expects average domestic coal selling prices will
decline by around 5% year-on-year in 2020, amid slowing demand
growth in China, government measures to regulate the supply side
should prevent a deep and prolonged decline.

Yanzhou Coal's standalone credit profile is also supported by its:
diversified coal mining assets and related infrastructure;
good-quality of Australian coal under its subsidiary Yancoal
Australia, which has a low financial leverage; and low-cost mining
operations in Shandong Province.

Moody's expects Yanzhou Coal's adjusted debt/EBITDA and
EBIT/interest will remain around 3.0x and 4.3x respectively through
2020, compared with 3.4x and 4.1x in 2018. These metrics are
supportive of its standalone credit profile.

While Moody's expects that the coronavirus outbreak will have
negative effects on the Chinese economy, the short term disruption
- under Moody's base case scenario - will not have material impact
on the production volume and earnings for the company. Moody's will
continue to monitor the development and evaluate the credit impact
if the disruption prolonged.

Yanzhou Coal's liquidity profile is strong. Its cash on hand and
projected operating cash flow are more than sufficient to cover its
planned capex and debt maturity over the next 12 months.

These credit strengths are partly offset by (1) Yanzhou Coal's
moderately high debt leverage relative to rated global and regional
peers following years of expansion and acquisitions; and (2) the
execution and financial risks related to its investments in the
financial sector.

The rating also considers Yanzhou Coal's exposure to environmental,
social and governance (ESG) risks.

First, Yanzhou Coal faces elevated environmental risks associated
with the coal mining industry, including carbon transition risks as
countries seek to reduce their reliance on coal power. These risk
are partially mitigated by (1) Yanzhou Coal's geographically
diversified customer base across Japan, Korea, China, and
Australia; and (2) its sizeable investment of RMB3.3 billion
between 2018 and 2020 in environmental protection, focusing on
reducing air, water and dust pollution.

Second, Yanzhou Coal is also exposed to social risks associated
with the coal mining industry, including health and safety and
responsible production. These risks are somewhat mitigated by the
company's "zero mine site accidents" goal, and by its sponsorship
of corporate social responsibility projects such as poverty
alleviation campaigns in Shandong Province.

Third, with respect to governance, Yanzhou Coal's ownership is
concentrated in its parent company Yankuang, which directly and
indirectly owned 51.8% of the company as of June 2019. However,
this risk is mitigated by Yanzhou Coal's listing on both the Hong
Kong and Shanghai stock exchanges, and by the Shandong government's
close supervision over Yanzhou Coal through Yankuang.

Yanzhou Coal's stable rating outlook mirrors the stable outlook of
Yankuang, reflecting the close links between the two companies'
credit profiles. This view also reflects its expectation that there
will be no material changes in the company's overall business
profile or its strategic importance to Yankuang and ultimately to
the Shandong Provincial Government over the next one to two years.

Yanzhou Coal's rating would be upgraded if Yankuang's rating is
upgraded, which would reflect Yankuang's ability to strengthen its
financial profile without any adverse changes in government
support.

Yanzhou coal's rating would be downgraded if Yankuang's rating is
downgraded, which would reflect the group's material deterioration
in its financial profile.

Evidence of weakening government support on Yankuang or significant
increase investment of the group in non-coal related commercial
businesses will also pressure Yanzhou Coal's rating.

The principal methodology used in these ratings was Mining
published in September 2018.



=================
H O N G   K O N G
=================

BANK OF COMMUNICATIONS: Fitch Rates New AT1 Securities BB+(EXP)
---------------------------------------------------------------
Fitch Ratings assigned Bank of Communications (Hong Kong) Limited's
(BOCOMHK, A/Stable) proposed US dollar denominated non-cumulative
perpetual capital securities an expected rating of 'BB+(EXP)'. The
proposed securities are expected to qualify as the bank's Basel III
additional Tier 1 (AT1) capital and the proceeds will be used to
add to the bank's capital base and fund its business development.

The final rating on the proposed securities is subject to the
receipt of final documentation conforming to information already
received.

KEY RATING DRIVERS

Fitch applies BOCOMHK's support-driven Long-Term Issuer Default
Rating (IDR) of 'A' as the anchor rating for its Basel
III-compliant AT1 capital securities. Under Fitch's Exposure Draft
for the Bank Rating Criteria, a bank's IDR is used as the anchor
rating where Fitch believes institutional support is likely to be
extended further down the capital structure into more junior
obligations. For BOCOMHK, Fitch believes Bank of Communications
Co., Ltd. (BOCOM, A/Stable/bb-) is likely to extend support to
BOCOMHK's hybrid securities given the subsidiary's important role
in group and high operational integration with its parent - the
latter contributing to Fitch not assigning a Viability Rating to
BOCOMHK. BOCOM's IDR is, in turn, underpinned by expectations of
timely support from the Chinese government (A+/Stable), given the
bank's high systemic importance and the state being the largest
shareholder.

Fitch believes the expectation of institutional support mitigates
non-performance risk (hence zero notches is applied), but the
proposed AT1 securities are notched twice from the anchor rating to
reflect high loss severity, implying a rating of 'BBB+'. However,
under the Exposure Draft, an instrument's rating is capped at the
equivalent rating of an instrument issued by the source of support,
and the rating is capped at 'BB+' for issuers with Support Rating
Floors in the 'A' or 'BBB' category. Thus, this caps the rating for
BOCOMHK's AT1 securities at 'BB+', given BOCOM's sovereign-support
driven IDR and Support Rating Floor of 'A'.

BOCOMHK has full discretion to cancel any periodic distribution on
the proposed securities, and any distribution may only be paid out
of the bank's distributable reserves. In addition, BOCOMHK is not
obliged to pay any distribution if prevented from doing so under
Hong Kong's banking regulations or other Hong Kong Monetary
Authority (HKMA) requirements. However, Fitch does not expect
higher non-performance risk for BOCOMHK's AT1 instruments given the
level of its accumulated realised profits.

The proposed securities have lower recovery expectations than for
higher ranking securities due to their deep subordination status as
well as a non-viability trigger, as determined by the HKMA or a
government body, a government officer or other relevant regulatory
body with the authority to make such a decision. A non-viability
trigger includes a public-sector capital injection or equivalent
support being necessary to prevent the bank from becoming
non-viable. If a non-viability event occurs, outstanding principal
and any accrued but unpaid distribution of the proposed securities
will be written off, in part or in full, irrevocably to restore
viability. The amount to be written off will be as much as is
required for the bank to become viable or as per a determination
made by BOCOMHK and accepted by the HKMA, up to the full principal
and distribution amount on the proposed securities. The proposed
securities will rank ahead of claims only from BOCOMHK's ordinary
shareholders, and rank below all senior liabilities and Tier 2
capital securities of the bank in liquidation.

RATING SENSITIVITIES

The rating on the proposed securities is sensitive to changes in
BOCOMHK's Long-Term IDR, which is sensitive to Fitch's perception
of institutional support from BOCOMHK's parent and the sovereign's
ability and propensity to support BOCOM and its subsidiaries. The
rating for BOCOMHK's proposed securities may change if BOCOM's
Support Rating Floor and IDR are upgraded to 'AA-' or higher or are
downgraded to below 'BBB', as per the Exposure Draft.

Changes in the anchor rating or relative notching, potentially
stemming from a change in Fitch's assumptions around BOCOM's
ability and propensity to support the subsidiary and prevent
BOCOMHK from triggering the proposed securities' loss-absorption
features, may also affect the ratings of the proposed securities.
In addition, the rating is sensitive to divergence between the
final Bank Rating Criteria, when published, and the current
Exposure Draft.



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

ASUTI TRADING: CARE Maintains D Rating on INR115cr ST Loan
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Asuti
Trading Pvt Ltd. (ATPL) continues to remain in the 'Issuer Not
Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term/Short      5.00       CARE D/CARE D; ISSUER NOT
   Term Bank                       COOPERATING; Issuer not
   Facilities                      Cooperating based on best
                                   Available information
    
   Short-term Bank    115.00       CARE D; ISSUER NOT COOPERATING
   Facilities                      based on best available
                                   information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from ATPL to monitor the ratings
vide e-mail communications dated January 22, 2020; January 20, 2020
and January 14, 2020 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In the absence of
minimum information required for the purpose of rating, CARE is
unable to express opinion on the rating. In line with the extant
SEBI guidelines CARE's rating on Asuti Trading Private Limited's
bank facilities will now be denoted as CARE D/CARE D; ISSUER NOT
COOPERATING.

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

Detailed Rationale & Key Rating Drivers

At the time of last rating on March 5, 2019, the following were the
rating strengths and weaknesses: The reaffirmation in the ratings
of ATPL takes into account continuing NPA classification of the
account by its banker owing to devolvement of letter of credit as a
result of strained liquidity position.

ATPL, incorporated in the month of April 1996, is engaged in to
trading of iron and steel products. It was incorporated by Agarwal
family which was subsequently bought by Mr Siddhartha Bagrecha in
2011. It mainly trades in iron and steel products like – Hot
Rolled Coils (HRC), Cold Rolled Coils and Sheets (CRC/s), Alloy
CRC, Galvanized sheets, Mils Steel Angle and Round bar, etc.  

Status of non-cooperation with previous CRA: CRISIL has re-affirmed
its ratings on bank facilities of Asuti Trading Private Limited to
CRISIL D (Issuer Not Cooperating) vide press release dated
September 5, 2018 on account of non-cooperation by Asuti Trading
Private Limited with CRISIL's efforts to undertake a review of the
outstanding ratings.

AYURWIN PHARMA: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Ayurwin Pharma Private Limited

        Registered office:
        No. 1094, 19th Main 1st Block
        Rajaji Nagar, Bengaluru 560010
        Karnataka

        Factory:
        No. 238, Survey No. 73/C
        Doddanna Industrial Estate
        Hegganahalli, Bengaluru
        Karnataka 560091

Insolvency Commencement Date: February 5, 2020

Court: National Company Law Tribunal, Bengaluru Bench

Estimated date of closure of
insolvency resolution process: August 2, 2020
                               (180 days from commencement)

Insolvency professional: Mrs. Shirley Mathew

Interim Resolution
Professional:            Mrs. Shirley Mathew
                         No. 23, Fifth Cross Hutchins Road
                         Cooke Town, Bangalore 560084
                         E-mail: shirley@smathew.in
                                 ip.ayurwin@gmail.com

Last date for
submission of claims:    February 26, 2020


B.J. GRAINS: CARE Maintains 'D' Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of B.J. Grains
(BJG) continues to remain in the 'Issuer Not Cooperating'
category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank       6.00       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

Detailed Rationale, Key Rating Drivers and Detailed description of
the key rating drivers
CARE had, vide its press release dated November 1, 2018, placed the
rating of BJG under the 'issuer noncooperating' category as BJG had
failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. BJG continues to be
non-cooperative despite repeated requests for submission of
information through email dated January 21, 2020 and numerous phone
calls. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.

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

Detailed description of the key rating drivers
At the time of last rating on November 1, 2018 the following were
the rating strengths and weaknesses.

Key Rating Weaknesses

Delays in debt service obligations: As per banker interaction dated
October 29, 2018, there were continuous delays in interest payment
and overdrawals in cash credit facility and the account has been
classified as NPA

Established in October 2015, as a proprietorship entity, B. J.
Grain (BJG) is engaged in trading of grains and pulses. The firm
started its commercial operations from February 2016. BJG procures
the raw material primarily from domestic market, partly through
various brokers, processing mills and partly from farmers present
in the vicinity of Nagpur and adjoining region.


BANSAL FINTRADE: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Bansal Fintrade Private Limited
        Plot No. 84, Shiv Prabhu 2 F/F
        101, Sixsak Society
        Bhavnagar, Gujarat 364002

Insolvency Commencement Date: February 10, 2020

Court: National Company Law Tribunal, Ahmedabad Bench

Estimated date of closure of
insolvency resolution process: August 8, 2020

Insolvency professional: Tejas Shah

Interim Resolution
Professional:            Tejas Shah
                         B 201, Narayan Krupa Avenue
                         Opp. Prernatirth Derasar
                         Jodhpur, Satellite
                         Ahmedabad, Gujarat 380015
                         E-mail: tejasshah44@yahoo.com

                            - and -

                         9/B, Vardan Complex
                         Lakhudi Circle, Navrangpura
                         Ahmedabad 380014
                         E-mail: iptejaskshah@gmail.com

Last date for
submission of claims:    February 28, 2020


BHAGAT JEE: CARE Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Bhagat Jee
Steels Private Limited (BJSPL) continues to remain in the 'Issuer
Not Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank       16.15      CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

   Short- term Bank     0.57       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from BJSPL to monitor the ratings
vide letters/emails communications dated December 12, 2019, January
14, 2020, January 20, 2020 and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating on
BJSPL's bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.

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

Detailed description of the key rating drivers

At the time of last rating on March 15, 2019 the following were the
rating weaknesses and strength. (Updated the information available
from the Ministry of Corporate affairs)

Key Rating Weaknesses

Delay in debt servicing: There was delay in term debt servicing of
the company owing to its stressed liquidity position owing to
inadequate cash accruals from operations.

Bhagatjee Steels Private Limited (BSPL) was incorporated on June
14, 2000, promoted by Mr. Rakesh Kumar Agarwal and his family
members. Since its inception, BSPL has been engaged in
manufacturing of MS ingots, angles, flats, channels, rounds,
squares etc. The manufacturing facility of the company is located
at industrial area, Durgapur, West Bengal with an installed
capacity of 24000metric tonnes per annum (MTPA) for structural
steels and 50000 MTPA for MS ingots.

CHAITANYA EDUCATIONAL: CARE Reaffirms D Rating on INR9.96cr Loan
----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Chaitanya Educational Society (CES), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities           9.96       CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of CES continues to
remain tempered by stretched liquidity position on account of
ongoing delays in debt servicing.

Rating Sensitivities

Positive Factors
* The ability of society to meet its debt obligations on time
* Scale up of operations and improved in SBID margin from current
level on sustained basis along with maintaining enrolment ratio
above 70%.
* Timely realization of fee reimbursement from the government.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delays in meeting its debt obligations: The society, owing to delay
in receipt of fees from Andhra Pradesh government under the fee
reimbursement scheme for its various courses has led to strained
liquidity position resulting in delays in meeting its debt
obligation in time.

Chaitanya Educational Society (CES) was established in the year
2001 as a part of Chaitanya Group under the Societies Registration
Act, 1860 (A.P. Societies Registration Act, 2001) at Kakinada, East
Godavari District, Andhra Pradesh. The society was founded by Mr.
K.V.V.Satyanarayana with an objective of promoting educational
institutions of higher learning in the field of Science &
Technology, Engineering, Pharmacy, Management etc. Further, he is
ably supported by Mr. Sasi Karan Varma, the youngest son of Mr.
K.V.V.Satyanarayana Raju, who is the managing director of CES. The
society has established two institutions namely Chaitanya
Engineering College (CEC) (2002-03), Sri Chaitanya Engineering
College (SCEC) (2009-10). CES institutes have been approved by All
India Council for Technical Education (AICTE), New Delhi and
affiliated to the Jawaharlal Nehru Technological University (JNTU).
The courses offered in the CES institutes are B. Tech., M. Tech.,
M.B.A., and Engineering diploma with an overall sanctioned annual
intake of 1848 seats.

CHINTTPURNI ENGINEERING: Insolvency Resolution Case Summary
-----------------------------------------------------------
Debtor: Chinttpurni Engineering Work Private Limited

        Registered office:
        HIG-IV, Sector-E
        Aliganj, Lucknow
        UP 226024

Insolvency Commencement Date: February 14, 2020

Court: National Company Law Tribunal, Allahabad Bench

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

Insolvency professional: Mr. Kashi Viswanathan Sivaraman

Interim Resolution
Professional:            Mr. Kashi Viswanathan Sivaraman
                         Flat No. 204, Block-Menka
                         V3S Indralok, Plot No. GH-1
                         Nyay Khand-1, Indirapuram
                         Ghaziabad, Uttar Pradesh 201014
                         E-mail: sivarita68@yahoo.com

                            - and -

                         AAA Insolvency Professionals LLP
                         E-10A, Kailash Colony
                         Great Kailash-1
                         New Delhi 110048
                         E-mail: cew@aaainsolvency.com
                                 sivaraman@aaainsolvency.com

Last date for
submission of claims:    February 28, 2020


D S CONTRACTORS: CARE Maintains D Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of D S
Contractors Private Limited (DSCPL) continues to remain in the
'Issuer Not Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank       5.69       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

   Short- term Bank     7.00       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

Detailed Rationale, Key Rating Drivers and Detailed description of
the key rating drivers
CARE had, vide its press release dated November 27, 2018, placed
the rating of DSCPL under the 'issuer non-cooperating' category as
DSCPL had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. DSCPL continues to be
non-cooperative despite repeated requests for submission of
information through email dated January 21, 2020 and numerous phone
calls. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.

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

Detailed description of the key rating drivers

At the time of last rating on November 27, 2018 the following were
the rating strengths and weaknesses (Updated for information
available from Roc website)

Key Rating Weaknesses

Delays in debt service obligations: As per banker interaction dated
November 26, 2018, there were on-going delays in servicing of debt
obligation

DSCPL is a Panaji (Goa) based company promoted by Mr. Swaran Singh
Gill (Managing Director) along with his wife Ms. Jatinder Kaur.
DSCPL undertakes Engineering Procurement Construction (EPC) from
Government bodies as well as Private Companies. The company is a
registered as a Class-IA Contractor in the state of Karnataka and
engaged in civil construction work comprising of buildings, roads,
bridges etc. primarily in the states of Karnataka and Goa.

DECCAN AUTO: CARE Maintains 'D' Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Deccan Auto
Limited (DAL) continues to remain in the 'Issuer Not Cooperating'
category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank       42.35      CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

   Short- term Bank     8.00       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from DAL to monitor the rating(s)
vide e-mail communications/letters December 24, 2019, December 30,
2019, January 7, 2020, and January 13, 2020 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on Deccan Auto Limited's bank facilities will
now be denoted as CARE D/CARE D; ISSUER NOT COOPERATING.

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

The ratings continue to take into account delays with respect to
debt servicing owing to cash flow mismatches.

Detailed description of the key rating drivers
At the time of last rating on January 2, 2020 the following were
the rating strengths and weakness: (Updated from information
available from Ministry of Corporate Affairs)

Key rating weakness

Delays in debt servicing owing to liquidity issues: Lenders have
reported that there are delays with respect to repayment of
principal obligations of term loans primarily on account of
liquidity constraints due to cash flow mismatches.

Regulated nature of industry: The industry is regulated with
various approvals and certification albeit some of the norms have
been relaxed by Authorized Regulatory Bodies. Govt. of India with a
view to regulate the bus body industry and passenger safety has
announced the new code of accreditation for bus body builders.
Accreditation implies evaluating, assessing and approving the
capacities of a bus body builder to consistently ensure the
specified quality of bus bodies.

Key rating strengths

Experienced promoters: DAL is a part of Prasaditya group, promoted
by Mr. M.S.R.V Prasad (Chairman), who has about three decades of
experience in diverse sectors such as cement manufacturing, steel
manufacturing, steel and alloy castings, software & services, among
others. The group also has presence in the asset reconstruction
space through the company Pridhvi Asset Reconstruction and
Securitization Company Limited (PARAS) which has been jointly
promoted Mr. Prasad along with Dr. Murali Krishna Prasad Divi in
2007.

Analytical approach: Standalone

Deccan Auto Limited (DAL), promoted by Mr. M.S.R.V Prasad
(Chairman), Mr. V. A. Norhi and Mr. M. Sunil Prasad, was
incorporated in 2011 in Hyderabad, Telangana. The company is
engaged in bus assembling and bus-body building at its
manufacturing facilities (annual installed capacity of 3000 buses)
located at Kodakanchi village, Medak district, Telangana. The
company was incorporated with the object of manufacture of semi
luxury to luxury buses catering to the needs of Government run
Transport undertaking and the private tour operators.

DEWAN HOUSING: Reports INR934.35cr Net Profit in Q3 Ended Dec. 31
-----------------------------------------------------------------
BloombergQuint reports that Dewan Housing Finance Corporation Ltd.,
which is undergoing insolvency proceedings, reported a profit
during the quarter ended December, helped by a tax adjustment.
BloomberQuint says the earnings, prepared under charge of the
administrator appointed by the Reserve Bank of India, outlined a
series on ongoing investigations surrounding the company's affairs,
which could alter the financial picture.

According to BloombergQuint, DHFL reported a profit after tax of
INR934.35 crore for the third quarter of 2019-20 compared with
INR313.6 crore a year ago. In the second quarter, the non-bank
lender had reported a net loss of INR6,705 crore.

During the quarter, the company adjusted for deferred tax assets of
INR1,102 crore, as it decided to move to the lower corporate tax
rate announced by the government. Net interest income for the
quarter stood at INR960.83 crore, up 6.3 percent from the year-ago
period, BloombergQuint discloses.

The reported net interest income and profit, however, does not
provide a fair picture as DHFL is under moratorium as per
insolvency rules and has not paid interest on borrowings, the
report notes. "The company has not provided for interest amount of
INR527 crore on borrowings since insolvency commencement date, that
is, Dec. 3, 2019 based on the opinion from legal advisers," the
release said, BloombergQuint relays.

If the interest was accrued on borrowings, the profit for the
quarter and nine months would have been lower by INR392 crore, the
company, as cited by BloombergQuint, said.

BloombergQuint says the earnings came amid ongoing investigations
into various aspects of DHFL's operations. Many of these were
flagged off by the company's auditors during previous quarterly
earnings reports.

Auditors had identified INR5,652.69 crore in inter-corporate
deposits outstanding as of March 31, 2019. Of these, INR1,129.36
crore has been repaid and INR1,306.6 crore have been converted into
term loans, BloombergQuint discloses. Outstanding inter-corporate
deposits stand at INR3,793.76 crore. The recoverability or
otherwise of these is yet to be ascertained, the company said.

According to the report, DHFL's corporate loan portfolio had been
"fair valued" at INR42,361 crore in previous quarters based on an
internal valuation. The resulting fair value loss was estimated at
INR5,986 crore. Of this, INR4,852 crore was accounted for up to
September 2019. The balance INR1,134 crore has been charged to the
profit and loss statement in the third quarter.

There exists a mismatch to the extent of INR3,018 crore that is yet
to identified and mapped to individual parties and the underlying
securities available, if any, out of the available surplus security
covers, BloombergQuint notes.

BloombergQuint adds that the administrator informed exchanges that
multiple issues of financial significance, which were highlighted
by joint statutory auditors in previous reports, are currently
being investigated by the concerned agencies, such as the Serious
Frauds Investigation Office and the Enforcement Directorate. The
outcome of the investigations and their impact on the company's
financials are not yet known.

The company has incurred a loss of INR6,089 crore in the nine
months ended December, 2019, eroding its net worth substantially,
says BloombergQuint.

However, DHFL's administrator noted that these financial results
have been drawn on 'going concern' basis under the Corporate
Insolvency Resolution Process, the outcome of which cannot be
currently ascertained. "We are therefore unable to comment as to
whether the 'going concern' basis for the preparation of these
financial results is appropriate," the administrator said,
BloombergQuint relays.

                             About DHFL

Dewan Housing Finance Corporation Limited (DHFL) operates as a
housing finance company in India. The company's deposit products
include fixed deposit products for individuals, and trusts and
institutions; and corporate, recurring, and Wealth2Health deposits
products. It also offers home loans, which include home improvement
loans, home construction loans, home extension loans, plot
loans/land loans, plot and construction loans, and balance transfer
of home loans, as well as home loans for the self-employed; small
and medium enterprise loans, including property term, plant and
machinery, medical equipment, and business loans; mortgage loans,
such as loans against property, loan for purchase of commercial
premises, and loan through lease rental discounting; and NRI home
loans.

As reported in the Troubled Company Reporter-Asia Pacific on Dec.
5, 2019, Deccan Herald said the Mumbai bench of the National
Company Law Tribunal (NCLT) on Dec. 2, 2019, admitted a petition by
the Reserve Bank of India (RBI) seeking bankruptcy proceedings to
resolve the mortgage player Dewan Housing Finance (DHFL). The move
came in after the Reserve Bank on Nov. 29, 2019, made an
application for bankruptcy proceedings to resolve the credit and
liquidity crisis at the company, which became the first financial
sector player being sent for bankruptcy.

RBI appointed R Subramaniah Kumar as the company's administrator.

Financial creditors to DHFL have submitted claims worth INR86,892
crore against the mortgage lender, BloombergQuint disclosed.

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

The instrument-wise rating actions are:

-- INR17.63 mil. Term loans due on June 2021 migrated to non-
     cooperating category with IND BB (ISSUER NOT COOPERATING)
     rating; and

-- INR10.10 mil. Fund-based limits Migrated to non-cooperating
     category with IND BB (ISSUER NOT COOPERATING) / IND A4+
     (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 13, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in November 2013, DASPL manufactures sweeteners,
vegetable extracts and cattle feed at its plant in Uttarakhand. It
commenced commercial operations in February 2014. DASPL is promoted
by Anuj Kumar, who has over 10 years of experience in the
agricultural commodities industry.  

FORTUNE INFRAHEIGHT: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Fortune Infraheight Private Limited
        B-117, Sector-67
        Noida 201301
        Uttar Pradesh
        India

Insolvency Commencement Date: February 10, 2020

Court: National Company Law Tribunal, Allahabad Bench

Estimated date of closure of
insolvency resolution process: August 8, 2020

Insolvency professional: Mr. Satyendra Sharma

Interim Resolution
Professional:            Mr. Satyendra Sharma
                         M-3, Block No. 51, 1st Floor
                         Anupam Plaza-II
                         Above Axis Bank
                         Sanjay Place
                         Agra 282002
                         E-mail: satyendrasirp@gmail.com
                                 fortuneindraheight12@gmail.com

Classes of creditors:    The Individual Allottees/Investors
                         under the Real Estate Project

Insolvency
Professionals
Representative of
Creditors in a class:    Atiuttam Prasad Singh
                         A-97 and 98, Upper Ground Floor
                         Street No. 6 Madhu Vihar, New Delhi
                         National Capital Territory of Delhi
                         110092
                         E-mail: atiuttamsingh@gmail.com

                         Mr. Rajan Rawat
                         B-602, Azziano
                         Rustomjee Urbania
                         Majiwada, Thane West
                         Mumbai, Thane
                         Maharashtra 400601
                         E-mail: rajanrawat61@rediffmail.com

                         Mr. Ravi Sharma
                         D-63 JFF Complex
                         Jhandewalan
                         New Delhi
                         Delhi 110055
                         E-mail: ip.ravisharma@gmail.com

Last date for
submission of claims:    February 25, 2020


G V AUDIO: CARE Cuts INR7.50cr LT Loan Rating to 'D', Not Coop.
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of G V
Audio Visionn Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       7.50       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Revised from CARE B; Stable On
                                   the basis of best available
                                   information

Detailed Rationale & Key Rating Driver

CARE has been seeking no default statement G V Audio Visionn
Private Limited to monitor the rating vide e-mail communications
dated October 31, 2019 to January 31, 2020 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided no default statement for monitoring the ratings. In
line with the extent SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
ratings on G V Audio Visionn Private Limited's bank facilities will
now be denoted as CARE D, ISSUER NOT COOPERATING.

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

Detailed rationale and key rating drivers

The revision in rating assigned to the bank facilities of G V Audio
Visionn Private Limited factors in ongoing delays in meeting of
debt obligations.

Detailed description of the key rating drivers

Key Rating Weakness

Ongoing delays in meeting of debt obligations: G V Audio Visionn
Private Limited has been facing liquidity issues due to which there
are irregularities and delays in repayment of debt obligations.

GOODWIN JEWELLERS: Ind-Ra Moves D Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Goodwin Jewellers
Private Limited's (GJPL) 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 action is:

-- INR700 mil. Fund-based working capital facility (Long-
     term/Short-term) migrating to non-cooperating category with
     IND D (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 14, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2004, GJPL is engaged in the retailing of gold,
silver and diamond jewelry. The company is a part of Goodwin Group,
which has business interests in gems and jewelers, security
solutions and real estate.

GUJARAT STEEL: CARE Maintains 'D' Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gujarat
Steel & Pipes (GSP) continues to remain in the 'Issuer Not
Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term/Short      24.00      CARE D/CARE D; ISSUER NOT
   Term Bank                       COOPERATING; Issuer not
   Facilities                      Cooperating based on best
                                   Available information
    
Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated January 7, 2019, placed the
ratings of GSP under the 'Issuer Non Co-operating' category as GSP
had failed to provide information for monitoring of the rating. GSP
continues to be noncooperative despite repeated requests for
submission of information through e-mail communication dated
January 21, 2020 and numerous phone calls. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.

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

Detailed description of the key rating drivers

At the time of last rating on January 7, 2019 the following were
the rating strengths and weaknesses (updated based on banker
interaction).

Key Rating Weaknesses

Delays in servicing of debt obligations: Due to weak liquidity
position of the firm, there have been delays in servicing of debt
obligations. Furthermore, as per feedback received from the
lender, the account has been classified as non-performing asset
(NPA).

Constituted in 1983, Ahmedabad based Gujarat Steel & Pipes (GSP)
was established by Mr. Rajnikant P. Shah as the key partner. The
firm is engaged in the trading of long steel products like rounds,
billets, angles, beams, bloom, pipes, sheets, plates, TMT bars and
wires.

H.L. TECH FABRICS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: H.L. Tech Fabrics Ltd.
        C-116, Farmers Aptts.
        Plot No. 8, Sector-13
        Rohini, New Delhi 110085

Insolvency Commencement Date: February 10, 2020

Court: National Company Law Tribunal, Delhi Bench

Estimated date of closure of
insolvency resolution process: August 8, 2020
                               (180 days from commencement)

Insolvency professional: Mohd Rashid

Interim Resolution
Professional:            Mohd Rashid
                         Ch. No. C-45
                         C.L. Joseph Block
                         Tis Hazari
                         Delhi 110054
                         E-mail: mrashid_adv@yahoo.co.in
                                 hltechfabrics.cirp@gmail.com

Last date for
submission of claims:    March 3, 2020


HMT MACHINE: CARE Reaffirms 'C' Rating on INR49.82cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of HMT
Machine Tools Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank
   Facilities         49.82        CARE C; Stable Reaffirmed

   Short term Bank
   Facilities         72.90        CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of HMT Machine Tools
Limited continues to be constrained by its weak financial profile,
albeit improvement in FY19, stressed liquidity with continuing
losses and negative networth in addition to deferring its dues on
long-term loans extended by Government of India (GOI). The rating
is also constrained by an instance of LC
devolvement and overdrawal in cash credit during the past one year,
regularized within a month. These rating weaknesses are partially
offset by its parentage, experienced management team and funding
support from GOI.

Rating Sensitivities

Positive factors
* Sustenance of positive PBDILT margin and positive gross cash
accruals

Negative factors
* Lack of government support in the future
* Delay in servicing repayment obligations

Detailed description of the key rating drivers

Key Rating Weaknesses

Financial risk profile though weak improved during FY19, albeit
stressed liquidity
During FY19, HMTMTL posted positive PBILDT margin in more than a
decade. The company undertook major cost cutting measures like
inventory management, on-time delivery of products to improve their
operational performance during this period. The company reported
net loss of INR63.83 Cr in FY19 (FY18: INR129.25 Cr loss) and the
accumulated losses of the company stood at INR1555.02 crore as on
Mar'19 (Mar'18: -1491 crore).

HMTMTL has been incurring losses since inception. The company's
performance in the past has largely been impacted by subdued demand
for the products from end users segment as well as the company's
strained liquidity position limiting the company to execute orders.
Low capacity utilization, ageing machineries, rising overhead
expenses, employee costs and ballooning capital charge is behind
the company's losses. Company's liquidity is being supported by
fresh infusion from GOI every year.

In the past 12 months there was an instance of LC devolvement and
CC overdrawal which was regularized within a month. The company
clocked revenue of INR130 Cr during 9MFY20 at a PBILDT loss. The
company presently has an order book of INR350 Cr to be executed
within 1 year.

Key Rating Strengths

Long track record of operation and experienced management team
HMTMTL is part of HMT group, and is operating in the present line
of business for more than six decades. Over the years of operation,
company has established itself in the industry. The day-to-day
affairs of the company are looked after by Shri B.M. Shivashankar,
having experience in similar line of business. He is assisted by
team of qualified and experienced professionals having adequate
experience in respective fields.

Support from GOI
Being a part of HMT Ltd, a central Government entity, HMTML has
received support from GoI. During FY19, GoI infused INR135.83 Cr
for meeting working capital requirements. As on March 31, 2019, the
total borrowing from GoI including preference share capital stands
at INR1151.73 crore.

Liquidity: Poor
The company's gross cash accruals continued to remain negative
during FY19. The company's current ratio was 0.53 as on March 31,
2019 and the operating cycle stretched to 225 days in FY19 from 209
days in FY18. The company's average fund based working capital
utilisation was close to 100% as informed by the bankers. As on
December 31, 2019, the company's free cash and bank balance was
INR12 crore.

HMT Machine Tools Limited is a 100% subsidiary of HMT Limited,
incorporated in 1953 by the Government of India (GOI). HMTMTL is
engaged in manufacturing of turning, grinding, gear cutting,
special purpose machines, die casting machines and plastic
injection moulding machines, presses and press brakes, printing
machines, CNC control systems and precision components. Its
manufacturing plants are located at Bangalore, Pinjore (Haryana),
Hyderabad (Andhra Pradesh), Ajmer, and Kalamassery (Kerala).

IDEA INFINITY: Ind-Ra Hikes Issuer Rating to BB+, Outlook Positive
------------------------------------------------------------------
India Ratings has upgraded Idea Infinity IT Solutions Private
Limited's (IIISPL) Long-Term Issuer Rating to 'IND BB+' from 'IND
BB (ISSUER NOT COOPERATING)'. The outlook is Positive.

The instrument-wise rating actions are:

-- INR40 mil. (increased from INR5 mil.) Fund-based working
     capital limits Long-term upgraded; short-term affirmed with
     IND BB+/Positive/IND A4+ rating;

-- INR292 mil. (increased from INR47 mil.) Non-fund-based working

     capital limits affirmed with IND A4+ rating;

-- INR10 mil. Fund-based facilities *# assigned with IND BB+ /
     Positive / IND A4+ rating; and

-- INR58 mil. Non-fund-based facilities * assigned with IND A4+
     rating.

* The final rating has been assigned upon the sanction and
execution of loan documents for the above facilities by IIISPL to
the satisfaction of Ind-Ra.

#Assigned final long-term rating to 'IND BB+/Positive' after being
upgraded from 'Provisional IND BB/Stable'

The Positive Outlook reflects Ind-Ra's expectation of IIISPL
clocking stable revenue growth in FY20.

KEY RATING DRIVERS

The upgrade reflects significant growth in IIISPL's medium scale of
operations, as reflected by revenue of INR1,063 million in FY19
(FY18: INR451 million). The growth in revenue was on increased
order execution and the company clocked INR927.6 million revenue in
9MFY20. Ind-Ra expects IIISPL's revenue to witness stable growth in
FY20, backed by an order book of INR2,519 million (2.37x of FY19
revenue) as in January 2020.

The rating factor in IIISPL's comfortable credit metrics. The
interest coverage (operating EBITDA/gross interest expense) stood
at 4.5x in FY19 (FY18: 3.6x) and net leverage (adjusted net
debt/operating EBITDA) at 0.6x (1.5x).  The credit metrics improved
mainly due to an increase in the absolute EBITDA to INR88.6 million
in FY19 (FY18: INR69 million) on the back of strong revenue
growth.

The ratings further factor in IIISPL's healthy profitability. The
company's EBITDA margin contracted to 8.3% in FY19 (FY18: 15.3%)
owing to an increase in the expenses incurred towards the execution
of orders. IIISPL's return on capital employed stood at 42% in FY19
(FY18: 36%).

Liquidity Indicator- Adequate: IIISPL's average maximum utilization
of fund-based facilities and non-fund based facilities stood at
34.5% and 41.1%, respectively, for the 12-months ended in December
2019. The cash flow from operations remained positive at INR88
million in FY19 (FY18:INR4 million) led by an improvement in
EBITDA. Consequently, free cash flow turned positive to INR66
million in FY19 (FY18: negative INR15 million). The company's fund
flow from operations remained positive over FY15-FY19 (FY19: INR55
million; FY18: INR42 million). Its networking capital improved to
five days in FY19 (FY18: 57 days,) supported by an increase in
payable days to 65 (24). IISPL's cash and equivalents amounted to
INR30 million at FYE19 (FYE18: INR5 million).

The ratings are constrained by the intense competition in the
industry. However, this risk is mitigated to some extent by
IIISPL's strong relationships with its existing customers.

The ratings also reflect IIISPL's high customer concentration risk,
with the Bangalore Electricity Supply Company Ltd contributing
around 60% to IIISPL's total revenue in FY19. The top five
customers contributed 78% to the total revenue in FY19. Any issue
with these customers could impact the company's revenue
visibility.

The ratings, however, are supported by the promoter's experience of
about a decade in the information technology solution business.

RATING SENSITIVITIES

Positive: A substantial growth in the revenue, sustaining
profitability at current levels and reduction in customer
concentration to 50% of revenue, leading to a sustained improvement
in the credit metrics will be positive for the ratings.

Negative: A substantial decline in the revenue or profitability,
resulting in a sustained deterioration in the credit metrics will
lead to Outlook being revised to Stable.

COMPANY PROFILE

Incorporated in 2008, IIISPL is a Bengaluru-based company headed by
Ramesh K S. The company is engaged in the research and development
of software in India. It develops and maintains software for its
customers. IIISPL has a wide range of products that covers the
electricity department, water supply, and the Karnataka Police
Department.

INDIA INFOLINE: Fitch Assigns Final BB- Rating on $400MM Notes
--------------------------------------------------------------
Fitch Ratings assigned a final rating of 'BB-' to India Infoline
Finance Limited's (IIFL; BB-/Stable) USD400 million 5.875% notes
due 2023 issued under its USD1 billion medium-term note (MTN)
programme.

The notes are secured obligations of IIFL, at all times ranking
pari passu and without any preference among themselves. The notes
are secured with property that includes all present and future
receivables or assets of the issuer, but excludes all fixed
deposits and other assets notified by the issuer to the security
trustee.

The notes are also be subject to maintenance-based covenants that
require IIFL and its principal subsidiaries to meet regulatory
capital requirements and maintain a net non-performing asset ratio
equal to or less than 5% at all times. IIFL is also required to
maintain the security coverage ratio at a level equal to or greater
than 1.0x at all times.

The notes are listed on the Singapore Exchange, with the net
proceeds of the notes to be used for lending to its businesses and
to support business growth in accordance with the guidance of
External Commercial Borrowings (ECB). The final rating on the notes
is in line with the expected rating assigned on February 13, 2020
and follows the receipt of documents conforming to information
previously received. Fitch first rated IIFL's MTN programme 'BB-'
on January 28, 2020.

KEY RATING DRIVERS

The notes are rated the same level as IIFL's Long-Term Issuer
Default Rating (IDR) of 'BB-' in accordance with Fitch's rating
criteria. Most of IIFL's debt is secured, and Fitch considers that
non-payment of the senior secured debt would best reflect uncured
failure. IIFL can issue unsecured debt in the overseas market, but
such debt is likely to constitute a small portion of its funding
and therefore cannot be viewed as its primary financial obligation.

INDIA: Struggles to Revive Credit Growth as Economy Stumbles
------------------------------------------------------------
The Financial Times reports that new measures by New Delhi designed
to encourage banks to boost lending and take more risks are
unlikely to revive anaemic credit growth in Asia's third-biggest
economy, industry observers have warned.

The FT relates that the Reserve Bank of India on Feb. 6 eased new
lending for cars, residential housing and small businesses and
introduced a $14 billion facility that allows commercial lenders to
borrow more cheaply from the central bank. But analysts said the
steps to shore up liquidity will not jump-start credit growth,
which will slow to 6.5 per cent in the year ending in March, down
from 13.3 per cent in the previous year, the FT relays citing ICRA,
a rating agency.

The credit squeeze comes as India's previously fast-growing economy
suffers its worst slowdown in more than a decade, the FT notes.

According to the report, Indian GDP is forecast to expand just 5
per cent in the year to March 31 in what would be a setback for
prime minister Narendra Modi, who came into office promising to
realise India's potential as a global superpower.

Without sufficient credit from banks, companies will struggle to
grow, defaults will rise and economic growth will slow further, the
report says.

"Banks are becoming more risk averse," the FT quotes Ashish Gupta,
head of Indian equity research at Credit Suisse, as saying. "There
are a lot of headwinds for the economy and particularly for the
financial sector, which is not growing and credit is not flowing.
It's difficult for the economy to recover."

The FT notes that Indian banks are exercising extreme caution in
their lending, after authorities cracked down on non-performing
loans. Years of profligate lending led to a build-up of bad debt
and the spectacular collapse of shadow bank IL&FS two years ago.

Credit expansion has stalled despite the central bank pumping
additional liquidity into the financial system since last year as
it sought to resuscitate growth. The RBI has progressively cut
rates to a near decade low of 5.15 per cent, the report says.

The FT adds that Sanjay Mookim, India equities strategist at Bank
of America, said New Delhi needed to pressure banks to lend.
"Someone needs to wield a stick and get banks to take a little more
risk," he said. Mr. Mookim added that small and medium-sized
companies were cut off from credit access as banks preferred to
lend only to large businesses.

But other analysts pointed out that some companies were reluctant
to borrow money, given the deteriorating health of the Indian
economy, the report relays.

"The RBI is addressing the supply side by incentivising banks but
the demand has to come back," the report quotes Anil Gupta,
vice-president of financial sector ratings at ICRA, a local
affiliate of Moody's, as saying. "I don't think credit availability
is the main issue," he said. "The banks are there to lend but
people aren't feeling confident."

According to the FT, businesses are holding back from major
investments in India as a slowdown enters its third year against a
backdrop of falling consumption and rising unemployment.

LATHA RICE: CARE Maintains D Rating in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Latha Rice
Industries (LRI) continues to remain in the 'Issuer Not
Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank       9.39       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

Detailed Rationale, Key Rating Drivers and Detailed description of
the key rating drivers
CARE had, vide its press release dated November 21, 2018, placed
the rating of LRI under the 'issuer non-cooperating' category as
LRI had failed to provide information for monitoring of the rating
as agreed to in its Rating Agreement. LRI continues to be
non-cooperative despite repeated requests for submission of
information through email dated January 21, 2020 and numerous phone
calls. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.

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

Detailed description of the key rating drivers

At the time of last rating on November 21, 2018 the following were
the rating strengths and weaknesses

Key Rating Weaknesses

Delays in debt service obligations: As per banker interaction dated
November 20, 2018, there were on-going delays in repayment of
principal and interest obligation of term loan and cash credit for
more than 30 days

Latha Rice Industries (LRI) was established as a partnership firm
in the October 2015 by Mr. Mahendra Muppavarappu and Mr. Nagayya
Muppavarappu. The processing facilities are located at Nagpur,
Maharashtra with rice milling capacity of 48000 tonnes per annum
(TPA). The finished product of LRI is sold under the brand name
Bahubali.

MANDEEP INDUSTRIES: CARE Lowers Rating on INR44.09cr Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Mandeep Industries (MI), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank      44.09       CARE D Revised from CARE B+
   Facilities                      

   Short term Bank      3.00       CARE D Revised from CARE A4
   Facilities           

Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of MI
takes into account on-going delay in servicing of its debt
obligations.

Rating Sensitivity

Positive Factor

* Track record of timely servicing of the debt obligation for at
least 90 days from the date of last delay/ default

Detailed description of the key rating drivers

Key Rating Weakness

On-going delay in servicing of debt obligations: As informed by the
lender, there are on-going delays in debt repayment for MI's
outstanding term loans and the account has been classified as NPA.

Upleta (Dist. Rajkot), Gujarat based M/s. Mandeep Industries (MI)
was setup as a partnership firm in 1973 by members of the Talaviya
family. MI is mainly engaged in groundnut processing which includes
crushing of groundnuts to produce raw oil and oiled cake, solvent
extraction of groundnut oiled cake to produce groundnut oil &
de-oiled cake and refining of groundnut oil. Furthermore, MI is
also engaged in opportunity based trading of agro-commodity
products including de-oiled rice bran (DORB) poultry feeds.

MUTHOOT FINANCE: Fitch Rates New US$ Sr. Sec. Notes BB+(EXP)
------------------------------------------------------------
Fitch Ratings assigned Muthoot Finance Limited's (MFL, BB+/Stable)
proposed US dollar-denominated senior secured notes an expected
rating of 'BB+(EXP)'. The notes will be issued under MFL's USD2
billion medium-term note programme (BB+). The final rating is
subject to the receipt of final documentation conforming to
information already received.

The proposed bonds will carry a fixed-rate coupon payable
semi-annually and will be secured by collateral, which includes all
receivables, but excludes all lien marked fixed deposits, of the
issuer. The proposed notes are also subject to maintenance
covenants that require MFL to meet regulatory capital requirements,
and ensure its security coverage ratio is equal to or greater than
1x at all times.

The proposed US dollar-denominated notes will be issued in the
international market by the company under the Reserve Bank of
India's New External Commercial Borrowings (ECB) framework issued
in January 2019.

KEY RATING DRIVERS

MFL's proposed bonds are rated at the same level as the company's
Long-Term Foreign-Currency Issuer Default Rating, in accordance
with Fitch's rating criteria.

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

RATING SENSITIVITIES

The rating on the proposed bond will move in tandem with MFL's
Long-Term Foreign-Currency IDR. MFL's IDR is sensitive to rising
leverage (if debt/equity approaches 4x). Post-issue of the proposed
notes, MFL's leverage is not expected by Fitch to increase
materially from current levels (2.7x at end-March 2019).

MUTHOOT FINANCE: S&P Assigns 'BB' Rating to New USD Sr. Sec. Notes
------------------------------------------------------------------
S&P Global Ratings assigned its 'BB' long-term issue rating to a
proposed issue of U.S. dollar senior secured notes by Muthoot
Finance Ltd. (BB/Stable/B). The rating on the notes is equalized
with the long-term issuer credit rating on Muthoot, an India-based
finance company.

The proposed notes will constitute direct, unconditional, secured,
and unsubordinated obligations of Muthoot, and shall at all times
rank equally with all other secured obligations of the finance
company.

The notes are secured by a first ranking pari passu charge over all
current assets, book-debts, loans and advances, and receivables
(including gold loan receivables), both present and future, and all
benefits, rights titles, interest, claims, and demands of Muthoot.

Muthoot must maintain a minimum security coverage ratio of at least
1.0x (excluding nonperforming assets), and regulatory capital
ratios above the regulatory minimum.

The rating on the proposed notes is subject to S&P's review of the
final issuance documentation.




RAM HARI AUTO'S: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Ram Hari Auto's Private Limited
        Vill Rani Ki Bain
        P.O. Gutkar Distt-Mandi
        HP 175021

Insolvency Commencement Date: February 17, 2020

Court: National Company Law Tribunal, SAS Nagar Mohali Bench

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

Insolvency professional: Ravinder Kumar Goel

Interim Resolution
Professional:            Ravinder Kumar Goel
                         Flat No. 211, Platinum Tower
                         Peer Muchalla, Dhakoli
                         Sahibzada Ajit Singh Nagar
                         Punjab 160104
                         E-mail: ravinderkumargoel@yahoo.in

                            - and -

                         #301, 3rd Floor, Plot No. D-190
                         Phase 8b, Sec. 74, Industrial Area
                         SAS Nagar Mohali
                         Punjab 160071
                         E-mail: ipramhari@gmail.com
                         Mobile: 8427050225

Last date for
submission of claims:    March 2, 2020


RAM HARI CARS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Ram Hari Cars Private Limited
        Vill Rani Ki Bain
        PO Gutkar Distt-Mandi
        Himachal Pradesh
        HP 175021
        IN

Insolvency Commencement Date: February 17, 2020

Court: National Company Law Tribunal, SAS Nagar Mohali Bench

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

Insolvency professional: Ravinder Kumar Goel

Interim Resolution
Professional:            Ravinder Kumar Goel
                         Flat No. 211, Platinum Tower
                         Peer Muchalla, Dhakoli
                         Sahibzada Ajit Singh Nagar
                         Punjab 160104
                         E-mail: ravinderkumargoel@yahoo.in

                            - and -

                         #301, 3rd Floor, Plot No. D-190
                         Phase 8b, Sec. 74, Industrial Area
                         SAS Nagar Mohali
                         Punjab 160071
                         E-mail: ipramhari@gmail.com
                         Mobile: 8427050225

Last date for
submission of claims:    March 2, 2020


RAM HARI MOTORS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Ram Hari Motors Private Limited
        Vill Rani Ki Bain
        PO Gutkar Distt-Mandi
        Himachal Pradesh
        HP 000000
        IN

Insolvency Commencement Date: February 17, 2020

Court: National Company Law Tribunal, SAS Nagar Mohali Bench

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

Insolvency professional: Ravinder Kumar Goel

Interim Resolution
Professional:            Ravinder Kumar Goel
                         Flat No. 211, Platinum Tower
                         Peer Muchalla, Dhakoli
                         Sahibzada Ajit Singh Nagar
                         Punjab 160104
                         E-mail: ravinderkumargoel@yahoo.in

                            - and -

                         #301, 3rd Floor, Plot No. D-190
                         Phase 8b, Sec. 74, Industrial Area
                         SAS Nagar Mohali
                         Punjab 160071
                         E-mail: ipramhari@gmail.com
                         Mobile: 8427050225

Last date for
submission of claims:    March 2, 2020


RP TELEBUY SKYSHOP: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: RP Telebuy Skyshop Private Limited

        Registered office:
        No. 3, Pillayar Koil Street
        Kamaraj Nagar, Chromepet
        Chennai, Kancheepuram 600044
        Tamilnadu

        Unit:
        A-201, B-201 & 202, 2nd floor
        Block-A, Pince Info Park
        New No. B-1, II Main Road
        Ambattur Industrial Estate
        Ambattur, Tamilnadu 600058

Insolvency Commencement Date: February 14, 2020

Court: National Company Law Tribunal, Coimbatore Bench

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

Insolvency professional: S. Palaniappan

Interim Resolution
Professional:            S. Palaniappan
                         B5, Patteeswarar Park North Block
                         Dr Ramasamy Layout
                         Velandipalayam
                         Coimbatore 641025
                         TamilNadu
                         E-mail: palyegu@yahoo.co.in

Last date for
submission of claims:    March 2, 2020


SAINATH AUTOLINKS: Ind-Ra Migrates BB- Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sainath Autolinks
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 BB- (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating action is:

-- INR340 mil. Fund-based working capital limits migrated to non-
     cooperating category with IND BB- (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 15, 2019. 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, Sainath Autolinks is an authorized dealer of
Maruti Suzuki India Pvt Ltd in West Bengal. It has a total of five
showrooms, including 3S showrooms (sales, service, and spares).

SD MILK: CARE Lowers Rating on INR7.25cr LT Loan to 'D'
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of SD
Milk Pro Private Limited (SPPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank      7.25        CARE D Revised from CARE BB-;
   Facilities                      Stable on the basis of best
                                   available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from SPPL to monitor the rating
vide e-mail communications dated August 28, 2019, September 10,
2019, November 11, 2019 January 7, 2020, January 9, 2020 numerous
phone calls. However, despite CARE's repeated requests, the company
has not provided the requisite information for monitoring the
rating. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on SPPL's bank facilities will now be CARE D;
ISSUER NOT COOPERATING.

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

The revision in the rating takes into account the ongoing delays in
debt repayment obligation as per discussion with the banker and
management.

Detailed description of the key rating drivers:

Key Rating Weaknesses

Delays in servicing of debt obligations: As per the interaction
with the banker, there are ongoing delays in repayment of principal
and interest of term loan. Further, the account has been classified
as SMA 2 by the bank.

SPPL is a Pune (Maharashtra) based company incorporated in May 18,
2015. The company is engaged in the business of processing of milk
processing and milk based products and providing cold storage
facility for raw milk. The commercial operations commenced from
April 2018.

SEBACIC INDIA: CARE Reaffirms D Rating on INR15.93cr Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Sebacic India Ltd. (SIL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term/Short-    15.93       CARE D/CARE D Reaffirmed
   Term Bank
   Facilities          

Detailed Rationale & Key Rating Drivers

The ratings for the bank facilities of SIL continue to take into
account the on-going delays in servicing of its debt obligations in
a timely manner on the back of its stressed liquidity and weak
financial profile.

Rating Sensitivities

Positive factors

* Delay free track record of 90 days in servicing of debt
obligations.

Detailed description of the key rating drivers

Key Rating Weaknesses

On-going delays in debt servicing: As per interaction with the
bankers and analysis of bank statements submitted by the lenders;
there were overdrawals in the account exceeding 30 days till
October 9, 2019. Post this, there were instances of overdrawals in
one of its cash credit account as result of application of interest
for the months of October, November and December, which were
however, cleared in 3-5 days. Thus, the company continues to over
utilize its working capital limits on account of its stressed
liquidity.

Incorporated in September 2007, Vadodara (Gujarat) based Sebacic
India Limited (SIL) is engaged in manufacturing of sebacic acid,
which finds application in production of various items including
bio-degradable plastics, automotive and aviation lubricants, engine
coolants and polyamide resins and cosmetics. As on March 31, 2019,
SIL had an installed capacity to manufacture 10,000 metric tonnes
per annum (MTPA) of sebacic acid.

Presently, SIL is majority owned by Wayzata III Indian Ocean Ltd, a
fund managed by Wayzata Investment Partners LLC (WIPL), a US based
private equity fund, with minority stakes being held by other
shareholders including Avalokiteshvar Valinv Ltd. (AVL), a Delhi
based entity and Mumbai based IndiaNivesh Renaissance Fund (INRF),
a fund managed by IndiaNivesh First Bridge Fund Managers Pvt. Ltd.
and Mr. Pankaj Pandya. These investors have collectively infused
around INR42.57 crore in SIL since FY17 in the form of equity and
compulsorily convertible preference shares.  The company is
presently managed by Mr. Pankaj Pandya as its Managing Director
under the supervision of the board of directors which has
representation by the major investors. Over the last year, SIL has
also appointed Mr. B. S. Yadav as Chief Operating Officer (COO),
Mr. Ravi Jain as Chief Financial Officer (CFO) and Mr. B. P. Negi
as Head of Plant Operations.

SETCO AUTOMOTIVE: CARE Lowers Rating on INR257.18cr Loan to C
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Setco Automotive Limited (SAL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank     257.18       CARE C; Revised from
   Facilities                      CARE B

   Short term Bank
   Facilities           2.00       CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of SAL
factors in the elevated intensity to support its loss making
subsidiary Lava Cast Private Limited (LCPL; Rated: CARE D). Bankers
have invoked the corporate guarantee issued by SAL for the bank
debt raised by LCPL with 60 days of notice/grace period (ending
March 2020). The management has indicated that they have submitted
the restructuring/Resolution Plan proposal for LCPL in December
2019 which is under process with bankers.

The ratings continue to be tempered further deterioration in the
liquidity profile of SAL on the back of weak demand scenario
witnessed in the automotive segment [especially Medium & Heavy
Commercial Vehicle (MHCV) segment], continuing losses reported by
SAL at the consolidated level, high utilization on its working
capital lines, which translates into minimal cushion to manage weak
demand scenario. The rating continues to takes cognizance of
elevated leverage (as on September 30, 2019) and high working
capital intensity on account of long operating cycle.

Rating Sensitivities

Positive Factors
* Substantial equity infusion translating into comfortable leverage
and liquidity indicators
* Positive profitability at the consolidated level on a consistent
basis and turnaround of all loss-making subsidiaries
* Improvement in overall gearing to 1.5x at the consolidated level
on a sustained basis

Negative Factors
* Non-payment of demanded amount by end of grace/notice period.
* Further weakening of liquidity indicators of SAL.
* Continuing losses at the consolidated level
Outlook: Negative

The negative outlook assigned to SAL factors in the significant
weakness witnessed in the demand outlook for domestic (including
both commercial vehicles and passenger vehicles), which would
translate into elongation in payment terms from its customers and
liquidity challenges arising due to same. Further, owing to
depleting demand from OEM's the Total Operating Income for FY20 is
expected to remain subdued. The debt coverage indicators and
liquidity indicators are expected to weaken further given high debt
dependency coupled with moderation in expected cash accruals for
FY20.

Detailed description of the key rating drivers

Key Rating Weaknesses

Invocation of corporate guarantee given by SAL to the bank debt of
LCPL: The corporate guarantee given by SAL to the bank debt raised
by LCPL has been invoked by the bankers, wherein SAL has been
offered 60 days of notice/grace period (ending March 2020). The
management has contended that they have submitted the
restructuring/Resolution Plan proposal for LCPL which is under
process with bankers. Further, management has also indicated that
they would be taking legal recourse on the invocation of corporate
guarantee.

Deteriorating operating performance in H1FY20; loss making
subsidiaries continue to be a drag on consolidated financials: On a
standalone basis, SAL reported 30% decline in top-line in H1FY20
due to weak demand scenario witnessed by the automotive segment
(especially MHCV segment) translating into lower Profit After Tax
(PAT) in H1FY20 which declined by 33.1% on a YoY basis. Further,
the loss-making subsidiaries are taking longer than expected
duration for turn-around and are depleting the consolidated
net-worth of SAL.

Leveraged Capital Structure with weakened liquidity indicators:
SAL has been undertaking debt funded capex for the past few years
which mainly includes the backward integration casting project
under its subsidiary LCPL. This has adversely impacted the overall
gearing which remained elevated as on H1FY20 (on a consolidated
basis). The overall gearing deteriorated further in H1FY20 due to
depletion in the net-worth on account of loss-making subsidiaries.
The liquidity indicators have also weakened as reflected by higher
working capital utilization limiting company's financial
flexibility.

Exposed to cyclicality associated with the auto industry: The auto
component industry is impacted by the cyclical nature of the
automobile industry. The auto industry is currently facing slowdown
due to weak demand scenario impacting volumes of OEM's. However,
the demand in the replacement market is an indirect function of
demand from OEMs. The presence of SAL in replacement market
partially offsets the weak demand from OEMs.

Higher segment and customer concentration risk: SAL has its major
share of revenue from MHCV segment which exposes it to segment
concentration risk. Further, around 70% of the total revenue from
OEM's is derived from top two OEM's. Any change in business risk
profile of these companies is likely to have a material impact on
the business of SAL.

Key Rating Strengths

Experienced promoters and established relationship with OEMs: SAL
was jointly promoted by 'Sheth Family' and Government of Gujarat
which divested its stake in the year 2001. SAL, the flagship
company of the 'Sheth Group' is led by Mr. Harish Sheth. At
present, SAL caters about 85% of MHCV Original Equipment (OEM)
demand in India and it is an exclusive supplier to Tata Motors
Limited's CV and MHCV segments. Further, SAL has long standing
relationship with other OEMs as well, and acts as supplier to
leading supplier of clutches to commercial vehicle manufacturers in
India. Its clientele includes Ashok Leyland, AMW, Daimler India
Commercial Vehicles, Volvo-Eicher Commercial Vehicles, Mahindra &
Mahindra and MAN India. Sales to OEMs contributed around 43% to the
revenue for FY19.

Liquidity: Poor
The liquidity position of SAL is poor as reflected cash and cash
equivalents of INR8.95 crore at the end of September 30, 2019 and
high working capital utilization coupled with elongated credit
period extended to its customers which translates into minimal
cushion to manage weak demand scenario.

Analytical approach:
CARE has taken a consolidated view on Setco Automotive Limited and
all its subsidiaries for arriving at the ratings as the entities
are under a common management, have similar line of business and
financial linkages. List of subsidiaries which are consolidated is
presented in Annexure 4. Further SAL has provided corporate
guarantee to the facilities availed by its subsidiary LCPL.

Setco Automotive Limited (SAL) is engaged in manufacture of
clutches for Medium and Heavy Commercial vehicles (MHCV) and
markets it under brand name 'LIPE Clutches'. SAL led by Mr. Harish
Sheth, is the flagship company of the 'Sheth Group'. Incorporated
in 1982, SAL has manufacturing facilities in India (Kalol in
Gujarat, Sitarganj in Uttarakhand), United Kingdom (Haslingden -
Lancashire) and USA (Paris – Tennessee). The overseas facilities
of SAL act as assembling units. At present, SAL meets about 85% of
MHCV Original Equipment (OEM) demand in India. The product line of
SAL also includes supply of hydraulics (pressure converters) and
fully machined ferrous castings.

SHREE RAJASTHAN: CARE Reaffirms 'D' Rating on INR92.10cr Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of Shree
Rajasthan Syntex Limited (SRSL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities           92.10      CARE D Reaffirmed

   Short-term Bank
   Facilities           40.42      CARE D Reaffirmed

   Fixed Deposits
   (Instrument)          3.4531    CARE D (FD) Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings for the bank facilities and instruments of SRSL
continue to take into account the on-going delays in servicing of
its debt obligations owing to its subdued operating performance
over the last five years along with cash loss reported by it in
FY18, FY19 and H1FY20, resulting in inadequate cash flows to meet
operational and debt servicing requirements.

Key Rating Sensitivities

Positive Factors

* Sustained track record of timely servicing of debt obligations
for a period of at least 90 days

Detailed description of the key rating drivers

Key Rating Weaknesses

On-going delays in servicing of debt obligations: There are
on-going delays in servicing of SRSL's debt obligations owing to
the subdued performance of the company over the last five years
ended FY19 along with net loss in the past and cash loss reported
by it in FY18, FY19 and H1FY20, resulting in inadequate cash flows
to meet operational and debt servicing requirements.

Incorporated in 1979, Shree Rajasthan Syntex Limited (SRSL) is
engaged in the manufacturing of synthetic (grey as well as dyed)
blended yarn, cotton yarn and Polypropylene Multi Filament (PPMF)
yarn. SRSL manufactures yarn in the range of 18-30 counts. As on
March 31, 2019, SRSL had an installed capacity of total 79,800
spindles for synthetic blended yarn and cotton yarn and 2,400
Metric Tonnes Per Annum (MTPA) for PPMF yarn at its Dungarpur,
Rajasthan based manufacturing facility.


SHRI KEDARESHWAR: CARE Maintains 'D' Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shri
Kedareshwar Builders & Developers Private Limited (SKBDPL)
continues to remain in the 'Issuer Not Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank      70.88       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated December 28, 2018, placed
the rating of SKBDPL under the 'issuer non-cooperating' category as
SKBDPL had failed to provide information for monitoring of the
rating. SKBDPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter dated November 27, 2019. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.

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

Detailed description of the key rating drivers

Key Rating Weaknesses

CARE as part of its due diligence exercise interacts with banker of
the company as part of this exercise has ascertained that there are
delays in debt servicing.

Shri Kedareshwar Builders & Developers Private Limited (SKBDPL) was
incorporated on 17th November 2014 by Madhav Deshpande and Abhijeet
Dudhane who are having more than two decades of experience in the
real estate business. The company is engaged in the business of
real estate development (residential and commercial projects)
mainly in Nagpur.

SHRIMATI NARASAMMA: CARE Maintains D Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shrimati
Narasamma Gotyal Shikshana Samaste (SNGSS) continues to remain in
the 'Issuer Not Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank       5.33       CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   Information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from of SNGSS to monitor the
rating(s) vide e-mail communications dated November 27, 2019 and
January 28, 2020 and numerous phone calls. However, despite CARE's
repeated requests, the firm has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of best
available information which however, in CARE's opinion is not
sufficient to arrive at fair rating. The rating on Shrimati
Narasamma Gotyal Shikshana Samaste bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.

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

Detailed Rationale& Key Rating Drivers

At the time of last press release dated October 1, 2018 the
following were the rating strengths and weaknesses:

Detailed description of the key rating drivers

Key Rating Weaknesses

On-going delays in debt repayments: There are on-going delays in
repayment of term loan instalment and interest repayments due to
weak liquidity position along with insufficient cash accruals
generated during FY17 and FY18(Provisional) to meet the debt
obligation on time. The quarterly repayment of instalment due on
July, 2018 was not met with over dues of INR0.16 crore and INR0.04
crore in term loan 1 and term loan 2 respectively.

Short track record of entity and small size of operations: SNGSS
was established in 2015. The society held classes for two academic
years so far. Further, the Trust has small size of operations
marked by gross receipts of INR0.04 crore during FY17 and low
corpus fund of INR1.43 crore as on March 31, 2017. The trust
received gross receipts of INR0.61 crore during FY18 (Provisional)
with surplus of INR0.09 crore.

Financial risk profile marked by leveraged capital structure and
net and cash losses during first year of operations: The capital
structure marked by overall gearing stood leveraged at 2.03x as of
March 31, 2017 on back of high debt and low corpus fund amount due
to initial years of operation. Further, the society also registered
cash losses of INR0.05 crore during FY17 on account of school
registration fees and other fixed expenditure incurred and low
gross receipts received on account of low enrolment of students.

Low enrolment ratio: Being a newly established educational society,
the enrolment ratio of SNGSS has been low during the last two
academic years.

Key Rating Strengths

Vast experience of the key management in the educational sector:
SNGSS was established by Mr Jettappa Siddappa Bolegaon, a social
worker. The key executives, forming the teaching and non-teaching
staff of the society have combined experience of more than a
decade. Mr Ch.Kalyan, the Principal of P.U.C College has an
experience of 7 years and holds master's degree in science and
education (Msc, Med). Mr G.T.Grebal, the Principal of the primary
and secondary school has an experience of 3 years and is Master's
degree in Arts and Bachelor's degree in Education (M.A and Bed).
Apart from the above, the society is supported by well qualified
teaching staff of 26 members.

Satisfactory infrastructure facilities: The school and P.U.C
buildings are constructed in a 6,972 square feet campus and have 2
floors with 3 science labs, a computer lab with 38 computers, 1000
Litre Purified Drinking Water Tank and a playground measuring 3267
square metre. The society also has hostel facility which
accommodates up to 300 students.

Shrimati Narasamma Gotyal Shikshana Samaste (SNGSS) was established
in the year 2015 to provide primary and higher school education by
Mr Jettappa Siddappa Bolegaon, a social worker. The society is
located in Vijapur district of Karnataka. Currently, the society
runs classes from kinder garden to 8th standard and Pre- University
Course -1 (PUC -1) and PreUniversity Course -2 and has strength of
528 students (as on March 31, 2018 (Provisional)) and 44 staff
members. The campus is built in an area of 6,972 square feet.

SPRING FIELD: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Spring Field Shelters Private Limited
        101 Ranga Villas
        New Dhamu Nagar
        Coimbatore 641037

Insolvency Commencement Date: February 12, 2020

Court: National Company Law Tribunal, Division Bench-I, Chennai

Estimated date of closure of
insolvency resolution process: August 10, 2020
                               (180 days from commencement)

Insolvency professional: P. Sriram

Interim Resolution
Professional:            P. Sriram
                         10/17, Anandam Colony
                         South Canal Bank Road
                         Mandaveli, Chennai 600028
                         E-mail: srirampcs@gmail.com

Last date for
submission of claims:    February 28, 2020


SRI VENKATA: CARE Cuts Rating INR6.36cr LT Loan to B+, Not Coop.
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Sri
Venkata Rice Industries (SVRI), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       6.36       CARE B+; Stable ISSUER NOT
   Facilities                      COOPERATING; Revised from
                                   CARE BB-; Stable on the basis
                                   of best available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking no default statement from SVRI to monitor the
ratings vide e-mail communications dated from September 2019 to
January 31, 2020 and numerous phone calls. However, despite CARE's
repeated requests, the firm has not provided no default statement
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The ratings on SVRI's bank
facilities will now be denoted as CARE B+; Stable; Issuer Not
Co-Operating.

VEDIK ISPAT: CARE Lowers Rating on INR85.39cr LT Loan to 'D'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vedik Ispat Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank      85.39       CARE D Revised from CARE BB+;
   Facilities                      Stable and removed from credit
                                   watch with developing
                                   implications

   Short term Bank
   Facilities          10.00       CARE D Revised from CARE A4+
                                   and removed from credit watch
                                   with developing implications

Detailed Rationale, Key Rating Drivers and detailed description of
the key rating drivers
The revision in rating of bank facilities of Vedik Ispat Private
Limited is on account of ongoing delays reported in servicing of
term loan obligations and overdues for more than 30 days in its
working capital limits availed from banks as per banker
interaction. The delays were due to increase in raw material prices
resulting in high cost of conversion leading to losses. The same
has led to tight liquidity position owing to which operations of
the manufacturing unit were affected.

Rating Sensitivities

Positive Factors

* Continuous timely servicing of the term loan with no delays for
period of more than 3 months and no overdues in the working capital
limits for more than 3 months.

Liquidity: Poor
Liquidity position of the company is poor as reflected by lower
cash accruals when compared to repayment obligations leading to
delays in servicing.

Vedik Ispat Pvt. Ltd. (VIPL), incorporated in 1992, was a dormant
company till 2010. In 2010, it started a project to set up a hot
and cold-rolled sheets facility in Hindupur (AP), which started
commercial activity in 2011, with an installed capacity of 72,000
TPA of slabs/billets. The plant has capability to produce both Mild
Steel (MS) and Stainless Steel (SS) products. In 2018-19, the
company undertook installation of Annealing pickling plant to
process HR coils as a part of its forward integration strategy.
Apart from the above, VIPL is also engaged in trading of TMT bars,
MS Pipes, angels and ingots. VIPL's day to day operations are
managed by its director Mr. Rajaram Bhutra, Mr. Narendra Bhutra and
Mr. Sharad Bhutra.

VERTEX SAFETY: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Vertex Safety Products Private Limited
        Plot No. 33, S.No. 13/2
        Sagar Co-op Housing Society NDA Road
        Bavdhan Khurd, Pune MH 411021
        IN

Insolvency Commencement Date: February 11, 2020

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: August 9, 2020
                               (180 days from commencement)

Insolvency professional: Dhanshyam Patel

Interim Resolution
Professional:            Dhanshyam Patel
                         322, Zest Business Spaces
                         M G Road, Ghatkopar East
                         Mumbai 400077
                         E-mail: dpatel@ckpatel.com
                                 vertex@ckpatel.com

Last date for
submission of claims:    February 29, 2020


VODAFONE IDEA: Ind-Ra Lowers Long Term Issuer Rating to 'B'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Vodafone Idea
Limited's (VIL) Long-Term Issuer Rating to 'IND B' from 'IND BBB-'
while maintaining it on Rating Watch Negative (RWN).

The instrument-wise rating action is:

-- INR35 mil. Non-convertible debentures (NCDs) ISIN#
     INE713G08046 issued on June 12, 2015 coupon rate 8.25% due on

     July 10, 2020, with IND B/RWN rating.

Downgraded and maintained on RWN

Analytical Approach: Ind-Ra continues to take a consolidated view
of VIL and its subsidiaries while arriving at the ratings, because
of the close operational and strategic linkages among them.

KEY RATING DRIVERS

Liquidity Indicator - Poor: The downgrade reflects severe stress on
VIL's near-term liquidity post the Supreme Court's (SC) ruling on
February 14, 2020, which directed the telecom companies (telcos) to
pay the adjusted gross revenue (AGR)-related liabilities to the
government of India by March 17, 2020. Subsequently, the department
of telecommunications (DoT) sent demand notices towards AGR
liabilities to telcos on February 14, 2020. These demand notices
required the telcos to make the payment of AGR dues by February 14,
2020, itself which are pending at VIL. Ind-Ra believes VIL does not
have the ability to pay the dues by March 17, 2020, given the lack
of clarity on promoter equity infusion, severe erosion in
refinancing flexibility and insufficient cash balance (INR125
billion as of December 2019). The ruling has also elevated the risk
of an acceleration in the payment of financial liabilities. Also,
even if VIL pays the principal amount for AGR dues to comply
partially with the SC order, the current cash and equivalent and
future cash flows will prove insufficient to meet the financial
obligations, in Ind-Ra's view.

In its earlier credit review dated January 24, 2020, Ind-Ra had
factored in the SC's decision to hear the modification application
filed by telcos, and the DoT's decision to not take any coercive
action on telcos, if they failed to comply with the SC's order
dated October 24, 2019. Ind-Ra had also given due weightage to the
likelihood that the modification application would be accepted by
the SC and telcos could agree bilaterally with the DoT to devise a
payment schedule for the AGR liabilities (for instance, a two-year
moratorium along with 10 years of installments) that would enable
the business to remain viable and a going-concern. In addition,
Ind-Ra had highlighted on January 24, 2020, that any unfavorable
ruling by the SC with respect to the modification application could
affect VIL's rating. However, the SC's ruling on February 14, 2020,
has mandated the immediate payment of the AGR dues and has
significantly reduced the possibility of any relief measure that
the DoT can possibly extend to telcos. Under the revised
circumstances, it is highly likely that VIL would miss the March
17, 2020 deadline to clear the AGR dues.

The RWN reflects significant uncertainties over the outcome of the
modification application filed by telcos; the quantum of the
AGR-related liabilities; and VIL's ability to pay the AGR dues. The
RWN also reflects uncertainties over other liquidity events, such
as the possible risk of accelerated payment of financial
liabilities and likely delays in asset monetization.  

Weakening of Financial Support from Promoter Groups: As of March
31, 2019, the Aditya Birla Group (ABG) held a 26% stake in VIL,
predominantly through Grasim Industries Limited (11.6%, 'IND
AAA'/Stable), Hindalco Industries Limited (2.6%), Birla TMT
Holdings Private Limited and IGH Holdings Private Limited (about 4%
each) and other ABG investment entities. Vodafone Plc (Fitch
Ratings Ltd Issuer Default Rating: 'BBB+'/Stable) held a 45.3%
stake in VIL, as on March 31, 2019.

Since January 2018, around INR483 billion has been infused in the
erstwhile Idea Cellular Limited, erstwhile Vodafone India Limited,
and VIL, through capital infusions and/or asset sale. The most
recent capital infusion was the promoter's contribution of INR179
billion in the rights issue in May 2019. Till the review in
November 2019, Ind-Ra had been factoring in the likely support from
ABG to VIL but had factored in the weakening of support from
Vodafone Plc. However, a continuation of support from ABG remains
contingent on the financial viability of the business, which
appears to be challenging, based on the prevailing scenario.

Vodafone Plc has ring-fenced its India business to two assets- 42%
stake in Indus Towers and 45.3% stake in VIL. Vodafone Plc funded
its contribution of INR110 billion towards the rights issue
indirectly through a loan secured against its Indian assets.
Furthermore, it aims to utilize proceeds from the sale of its 42%
stake in Indus Towers (about INR192 billion as per Ind-Ra's
estimates) to repay its contribution of INR110 billion, thereby
significantly limiting Vodafone Plc's ability to support VIL beyond
FY21-1HFY22. Assuming Vodafone Plc monetizes its 42% stake in Indus
Tower for INR192 billion cash and utilizes the proceeds for the
repayment of the loan worth INR110 billion, the total funding
flexibility with Vodafone Plc to support VIL would be about INR82
billion.

Continued Weak Operational Performance: VIL's subscriber market
share (visitor location register) declined to 30.5% in November
2019 from 36% in March 2019. Its revenue market share declined to
about 27.2% in 2QFY20 from about 32% in 4QFY19. Reliance Jio Incomm
Limited ('IND AAA'/Stable) continues to be aggressive in subscriber
acquisition and has become the largest player in terms of
subscribers and revenue. Hence, VIL's market share continues to be
at risk. Although the company's revenue raised 2.3% qoq in 3QFY20
and its average revenue per user rose slightly to INR109 in 3QFY20
from INR107 in 2QFY20, Ind-Ra believes VIL's performance is weak
compared to other players in the industry. Ind-Ra believes the
subscriber base is unlikely to show a meaningful recovery in the
near-to-medium term, given the sustained competitive pressures.

Weakening Credit Metrics: VIL's pro forma gross leverage (gross
debt/EBITDA) deteriorated to around 24x in FY19 (FY18: 11x), as the
EBITDA declined substantially to INR52.7 billion (INR119.3 billion)
and gross debt remained above INR1,200 billion. Given the
challenging financial conditions, VIL may reduce its future capital
expenditure, which may have an impact on its subscriber growth.
Hence, Ind-Ra has moderated VIL's FY21-FY22 CAPEX projections. Even
in such a scenario, VIL's gross leverage will exceed 8x until FY22.
Ind-Ra has not built-in any incremental Capex towards spectrum
acquisition or 5G roll-out over the next two years.

Third-Largest Player in Indian Telecom Industry: Post the merger
with erstwhile Idea Cellular, VIL has become India's third-largest
telecommunication service provider, with a revenue market share of
27.2% in 2QFY20 and a subscriber base of 304 million at end-3QFY20.
The company has 92% population coverage, with over 200,000 cell
sites and 1,846MHz of total spectrum holding. The merger has also
complemented the circle presence of both entities, as the erstwhile
Idea Cellular had a strong presence in rural areas, while the
erstwhile Vodafone India had a strong presence in urban areas.

Regulatory and Technology Risks: India's telecommunication services
industry, which is capital intensive in nature, is vulnerable to
changes in technology. According to media reports, the Indian
government is considering an additional spectrum auction and
roll-out of 5G technology by 2020, which might necessitate
additional investments by existing telecommunication players at a
time when they are yet to recover their investments in 4G
technology. Also, the telecom industry is highly regulated, which
makes players susceptible to adverse regulatory changes. For
instance, a reduction in the interconnect usage charges to
INR0.06/minute in October 2017 from INR0.14/minute earlier had a
sharp impact on the profitability of players.

RATING SENSITIVITIES

The RWN indicates that the rating may be downgraded or affirmed.
Ind-Ra is likely to resolve the RWN once the agency receives
greater visibility on VIL's liquidity situation.

COMPANY PROFILE

VIL is a telecommunication service provider, offering voice and
data services across all 22 service areas in India. It has an
overall subscriber base of 327 million, with a broadband subscriber
base of 120 million.



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

JAPAN: Still Sees Economy Recovering Despite Recession Forecasts
----------------------------------------------------------------
Yuko Takeo and Emi Urabe at Bloomberg News report that Japan's
government stuck to its view the economy is recovering despite the
sharpest contraction in more than five years last quarter and
forecasts from private sector analysts that the coronavirus
epidemic will trigger a recession.

In its monthly report for February, released on Feb. 20, the
Cabinet Office maintained its stance the economy is "recovering at
a moderate pace" amid continued weakness in manufacturing and
exports, Bloomberg relates.

Bloomberg says the unchanged assessment suggests Prime Minister
Shinzo Abe's government is in no hurry to offer more economic aid
after a recent stimulus package, even amid heightened concern the
coronavirus will hit Japan's supply chains, exports and tourism.
Economy Minister Yasutoshi Nishimura said fast implementation of
existing measures takes priority over anything additional.

While the Cabinet Office maintained its overall view, details of
its report showed deteriorating conditions, Bloomberg notes. The
report cut the assessment of bankruptcies for the first time in
almost five years, citing rising numbers of business failures, say
Bloomberg. Import levels, an indicator of consumer demand and
factory production, were also downgraded.

On the positive side, the government cited rising consumer prices
and an improving jobs market. Private consumption also continues to
pick up, the report said, an assessment that was at odds with
recent data showing a drop in household spending since October's
sales tax hike, Bloomberg adds.




=================
S R I   L A N K A
=================

NATIONAL PAPER: Cabinet Invalidates Decision to Liquidate
---------------------------------------------------------
Colombo Page reports that the Cabinet of Ministers has approved a
proposal to revive the national paper mills invalidating an earlier
decision to liquidate the state-owned enterprises.

According to Colombo Page, the Government has identified the
resumption of state enterprises, which have been closed down
without manufacturing activities, as a priority of the Government
and the Ministry of Industry and Supply Management has decided to
restart all the Public Enterprises which are not currently in
production and have the potential for restructuring.

Accordingly, it is planned to commence production at the
Valaichchenai and Embilipitiya Paper Mills under the National Paper
Company, which are currently inactive and the relevant feasibility
studies are currently underway, the report says.

As it is essential that the National Paper Company be active for
the activities, the Minister of Industry and Supply Management has
proposed to revoke the Cabinet decision taken earlier to liquidate
the Company and implement a voluntary retirement compensation
scheme to terminate the services of its existing employees,
according to Colombo Page.

The proposal put forward by Minister of Industry and Supply
Management Wimal Weerawansa has received the cabinet approval, the
report adds.


                           *********


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 2020.  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.



                *** End of Transmission ***