/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/171017.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 Tuesday, October 17, 2017, Vol. 20, No. 206 Headlines H O N G K O N G IDEAL DIAMOND: Case Summary & 20 Largest Unsecured Creditors I N D I A CACHAR ALLOYS: Ind-Ra Migrates B Issuer Rating to Non-Cooperating DUTTA BUILDER: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating GAYATRI POULTRIES: Ind-Ra Assigns B+ Issuer Rating NAVRANG ROADLINES: Ind-Ra Gives BB+ Issuer Rating, Outlook Stable PANACEA BIOTEC: CARE Raises Rating on INR959.55cr Loan to B+ PE ERECTORS: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating RN RICE: CARE Moves 'B' Rating to Not Cooperating Category SAHAKAR MAHARSHI: CARE Lowers Rating on INR35cr LT Loan to B SHITAL DIAM: Ind-Ra Migrates 'D' Issuer Rating to Non-Cooperating VTR MARKETING: CARE Moves B- Rating to Issuer Not Cooperating - - - - - ================ H O N G K O N G ================ IDEAL DIAMOND: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Ideal Diamond Trading Limited aka Jade Crown Trading Limited 19/F On Hong Commercial Building 145 Hennessy Road, Wan Chai Hong Kong Type of Business: Founded in 2009, Ideal Diamond Trading Limited aka Jade Crown Trading Limited is a diamond wholesaler based in Hong Kong. Ideal Diamond Trading is 100% owned by non-Debtor Exelco International Ltd. Chapter 11 Petition Date: October 13, 2017 Case No.: 17-12202 Court: United States Bankruptcy Court District of Delaware (Delaware) Debtor's Counsel: Michael R. Nestor, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Tel: 302-571-6600 Fax: 302-571-1253 E-mail: bankfilings@ycst.com mnestor@ycst.com Estimated Assets: $10 million to $50 million Estimated Debt: $10 million to $50 million The petition was signed by Jean-Paul Tolkowsky, authorized signatory. A full-text copy of the petition is available for free at: http://bankrupt.com/misc/deb17-12202.pdf Affiliates of Ideal Diamond Trading that filed Chapter 11 bankruptcy petitions in the U.S. Bankruptcy Court for the District of Delaware on Sept. 26, 2017: Entity Case No. ------ -------- Exelco North America, Inc. 17-12029 Exelco NV 17-12030 FTK Worldwide Manufacturing BVBA 17-12031 Ideal Diamond Trading USA Inc. 17-12032 Debtor Exelco North America, Inc. is 100% owned by non-debtor Exelco International Ltd. Debtor Exelco NV is owned by the following non-debtors: Exelco International Ltd., Lior Kunstler, and Jean Paul Tolkowsky. Debtor FTK Worldwide Manufacturing BVBA is owned by the following non-debtors: Lion Kunstler and Jean Paul Tolkowsky. Debtor Ideal Diamond Trading USA Inc. is 100% owned by debtor Ideal Diamond Trading Limited. Amended Consolidated List of Debtors' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Eurostar Diamond Traders Trade Debt $6,039,394 Hovenierstraat 53 2018 Antwerp, Belgium Email: ashin.kothari@eurostardiamond.com I.D.H. Diamonds NV Trade Debt $3,198,490 Pelikaanstraat 78 bus 105, 2018 Antwerp, Belgium Email: elianthe@idhtitanium.com Vitraag BVBA Trade Debt $2,526,354 Hovenierstraat 30, 2018 Antwerp, Belgium Email: vitraag@pandora.be Trau Bros NV Trade Debt $2,514,217 Hovenierstraat 53, 2018 Antwerp, Belgium Email: info@traubros.be N. Shah & Co. BVBA Trade Debt $2,341,433 Hovenierstraat 53 office 909 Box 6, 2018 Antwerp, Belgium Email: naresh.shah@telenet.be Rottenberg Marcdochee Loan $1,155,131 Helanalei 8, 2018 Antwerp, Belgium Email: mr@eadt.be De Hantsetters en Verhaere NV Trade Debt $1,140,577 Schupstraat 21, 2018 Antwerp, Belgium Email: info@dhv.be Pinkusewitz diam traders ltd Trade Debt $781,788 Jabotinsky 1, 5252002 Ramat Gan, Israel Email: office.ramatgan@pinkusewitz.com Rosy Blue Sales Ltd. Trade Debt $701,202 Maccabi Building B2 1, Jabotinksky Street Ramat Gan 52520, Israel Email: anish.parikh@rosyblue.com Da Trading DMCC Trade Debt $673,938 P.O. Box 340591, Unit No. Almas-43-B Almas Tower, Plot No. LT-2, Jumeirah Lakes Towers, Dubai, U.A.E. Email: dainfo@daztrading.com Desert Diamonds LLC Trade Debt $555,456 Office No 201, Asouk Al Kabeer Area, Near Bank of Baroda, Meena Bazar Bur - Dubai Email: desertdiamond09@gmail.com Segaldiam LTD Trade Debt $536,204 54 Betzalel Street, Ramat-Gan 52521 Israel Email: segaldiam@segaldiam.co.il Minda Brothers Trade Debt $434,998 Hovenierstraat 2, 2018 Antwerp Belgium Email: mindabrothers@ymail.com Kiran Gems Private Limited Trade Debt $400,457 FE-5011, Bharat Diamond Bourse, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai-400 051, India Email: sayaji.dhane@kirangems.com Mahendra Brothers Exports PVT, Ltd. Trade Debt $398,893 CE-7011, 7th Floor, Tower C, G Block, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (East), Mumbai 400 051, India Email: vilas.palvankar@mahendrabrothers.com Pradar Limited Trade Debt $341,329 P.O. Box 3923364 Pittsburgh, PA 15251-9364 USA Email: kuty@clevertech.biz K. Girdharlal International Ltd Trade Debt $304,405 1011, Prasad Chambers, Opera House, Mumba - 400 004, India Email: pintu@kgirdharlal.com Mishal NV Trade Debt $282,643 Hovenierstraat 2, 2018, Antwerp, Belgium Email: secretary@mishal.be Fischler Trade Debt $280,150 Schupstraat 21, 2018 Antwerp, Belgium Email: info@fischlerdiamonds.be M. Suresh Company PVT Ltd. Trade Debt $268,527 419, Parekh Market, Opera House, Mumbai-400-004, Maharashtra, India Email: hiral@msureshco.com ========= I N D I A ========= CACHAR ALLOYS: Ind-Ra Migrates B Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Cachar Alloys' 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 ratings will now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR37.5 mil. Fund-based working capital limit migrated to non-cooperating category with IND B(ISSUER NOT COOPERATING) rating; -- INR59 mil. Long-term loan migrated to non-cooperating category with IND B(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 25, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Cachar Alloys was established in 2012 and has a 23,200MTPA MS ingot manufacturing unit and an 8 tonnes induction furnace at Cachar. DUTTA BUILDER: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Dutta Builder & Developers Pvt Ltd's (DBDPL) 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 ratings will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR20 mil. Long term Loan migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 28, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Formed in 2008, DBDPL was engaged in developing a residential project Aquapolis. The project construction commenced in 2013. GAYATRI POULTRIES: Ind-Ra Assigns B+ Issuer Rating -------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Gayatri Poultries Pvt. Ltd (GPPL) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR30 mil. Fund-based working capital limit assigned with IND B+/Stable rating; -- INR130mil. Long-term loans due on March 31, 2024 assigned with IND B+/Stable rating. KEY RATING DRIVERS The ratings reflect GPPL's short track record, given the company commenced operations in July 2015, and small scale of operations. Revenue was INR264 million in FY17 (FY16: INR76 million). FY17 financials are provisional in nature. The ratings also reflect moderate credit metrics. In FY17, gross interest coverage was 2.8x (0.5x) and net financial leverage was 4.2x (19.7x). The ratings, however, are supported by a strong operating margin of 11.5% in FY17 (FY16: 8.9%). RATING SENSITIVITIES Negative: A fall in operating margin, along with deterioration in credit metrics, would lead to a downgrade. Positive: A rise in the scale of operations, along with an improvement in credit metrics, would lead to an upgrade. COMPANY PROFILE GPPL was incorporated in 2011 in Ganjum, Odisha, by Srinivasa Rao Vadlamundi, Shivanand Karanama, Prasad Vadlamundi and Y Kranti Kumar. The company set up a poultry firm with a daily capacity of 250,000 eggs. NAVRANG ROADLINES: Ind-Ra Gives BB+ Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Navrang Roadlines Private Limited (NRPL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise rating action is: -- INR335 mil. Fund-based working capital facilities assigned with IND BB+/Stable/IND A4+ rating. KEY RATING DRIVERS The ratings reflect NRPL's moderate liquidity due to an elongated net working capital cycle of 98 days in FY17 (FY16: 91 days) on account of stretched debtor days of 108 (92). The company's use of the fund-based limit was 94% on average for the 12 months ended August 2017. The ratings also reflect NRPL's moderate credit metrics, with EBITDA interest coverage (operating EBITDA/gross interest expense) of 1.50x in FY17 (FY16: 1.63x) and net leverage (adjusted net debt/operating EBITDAR) at 5.44x (4.81x), on account of high debt levels. The company is planning to bring in equity during FY18. The ratings factor in NRPL's exposure to geographical concentration risk, as its operations are largely concentrated in and around Gujarat. However, the ratings are supported by NRPL's medium scale of operations and almost stable EBITDA margin. The company's revenue increased to INR1.72 billion in FY17 (FY16: INR1.51 billion) on account of increased inflow of orders. EBITDA margins remained range-bound between 4%-5% during FY15-FY17. The marginal improvement in EBITDA margin in FY17 to 4.97% in FY17 from 4.59% in FY16 was mainly due to a reduction in vehicle rental expenses as the company purchased its own vehicles during the year. The ratings are also supported by NRPL's promoters' more than two decades of experience in the logistic business. RATING SENSITIVITIES Negative: A decline in the EBITDA margins or elongation of the net working capital cycle leading to deterioration in the credit metrics would lead to a negative rating action. Positive: Sustained revenue growth while maintaining the operating EBITDA margin and an improvement in the net working capital cycle along with credit metrics would lead to a positive rating action. COMPANY PROFILE NRPL was incorporated in 1984 as a proprietorship firm by Late Mr. Bishwanath Jindal in Ahmedabad, Gujarat and subsequently reconstituted as a private limited company in 2000. The company is managed by Mr. Manoj Jindal and Mr. Anup Jindal. The company provides logistics services. It offers door-to-door delivery of goods and warehousing services all over Gujarat; it also provides trucks loading and unloading services pan India. It owns three warehouses and 110 trucks. PANACEA BIOTEC: CARE Raises Rating on INR959.55cr Loan to B+ ------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Panacea Biotec Limited (PBL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 959.55 CARE B+, Stable Revised from CARE D Short term Bank Facilities 61.97 CARE A4 Revised from CARE D Detailed Rationale & Key Rating Drivers The revision in the ratings assigned to the bank facilities of PBL takes into account the improvement in the debt-servicing track record of the company since April 2017 on account of improved liquidity position. Further, the ratings continue to factor in the experienced promoters and management team of the company, its long track record of operations and various strategic alliances formed by the company to boost its revenues from overseas market. These rating strengths are, however, partially offset by PBL's weak financial risk profile, exposure to customer and product concentration risk in the vaccines segment and susceptibility of its margins to foreign exchange fluctuations. Going forward, the ability of the company to scale up its operations with better profitability margins as well as its ability to effectively manage its working capital cycle would be the key rating sensitivities. Key Rating Weaknesses Weak financial risk profile: During FY17, PBL reported total operating income of INR582.42 crore as compared to total operating income of INR672.46 crore in FY16, registering y-o-y decline of around 13%. The net revenues from operations have mainly decreased due to lower sale of pentavalent vaccine Easy - TT to UNICEF/PAHO, non-availability of IPV bulk leading to no sales of IPV vaccine, reduction in prices of products due to price control by NPPA, banning of irrational FDCs by DCGI and expiry of excise duty holiday period at Baddi facilities. PBILDT margin was 20.76% in FY17 (FY16: 20.53%). PBL has incurred loss before tax of INR83.78 crore (after considering exceptional items of INR37.54 crore) as against profit before tax of INR1.40 crore (after considering exceptional income of INR49.65 crore) for FY16. During the year, the exceptional items include provisioning of INR45.08 crore towards impairment of investments in NewRise Healthcare Pvt. Ltd. on account of its sale in April 2017. The overall gearing deteriorated from 10.13x as on March 31, 2016 to 22.65x as on March 31, 2017. Further in Q1FY18, PBL's Operating income was Rs 105.50 crore with negative PBILDT of Rs 6.02 crore as against income of Rs 135.22 crore with PBILDT of Rs 21.42 crore in Q1FY17. Exposure to foreign exchange fluctuation risk: PBL exports its product to around 30 countries including USA and Germany and has achieved exports turnover of INR200 crore during the crore. In FY17, 34.56% (PY: 36.30%) of total operating income came from overseas markets. As such, the profitability margins of PBL remain exposed to foreign exchange fluctuation risk. The company partially mitigates its foreign exchange risk through natural hedge. Natural hedge is available through import of around 31% of total raw materials. Further, PBL is also susceptible to product concentration risk as around 50% of its total operating revenue comes from vaccines segment. Key Rating Strengths Experienced promoters and management team and long track record of operations: The Company has been in the pharmaceutical business since 1984 and has a long track record of operations of more than 30 years. The company is promoted by the Jain family headed by Mr Soshil Kumar Jain who has an experience of more than 50 years in the pharmaceutical industry. He is assisted by Mr Ravinder Jain, Dr Rajesh Jain and Mr Sandeep Jain in looking after the operations of the company. The senior management team of PBL comprises of well-qualified and experienced members. Panacea Biotec Limited (PBL) was incorporated in February, 1984 under the name of Panacea Drugs Private Limited (PDPL). In September 1993, it was converted into a public limited company and its name was changed to the present one. PBL is promoted by the Jain family headed by Mr. Soshil Kumar Jain and is one of the leading biotechnology companies in India involved in manufacturing of vaccines and pharmaceutical formulations. PBL has manufacturing facilities in Himachal Pradesh and Punjab for vaccines and pharmaceutical formulations complying with international regulatory standards of USFDA, UK-MHRA, and WHO-cGMP standards etc. On account of the deterioration in the financial risk profile during the period FY12-14, the company approached the CDR cell for restructuring of the debt and executed a CDR scheme in FY15. Since then, PBL continues to service its debt obligations as per the CDR terms. PE ERECTORS: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated P.E. Erectors Pvt Ltd'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 ratings will now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR45 mil. Fund-based working capital limit migrated to non- cooperating category IND BB+(ISSUER NOT COOPERATING) rating; and -- INR100 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4+ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 17, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE P.E. Erectors was incorporated in 1983 in Kolkata. The company provides engineering services, with core competency in executing maintenance and mechanical erection jobs for power plants. RN RICE: CARE Moves 'B' Rating to Not Cooperating Category ---------------------------------------------------------- CARE Ratings has been seeking information from RN Rice Mill to monitor the rating(s) vide e-mail communications/ letters dated September 13, 2017, and numerous phone calls. However, despite CARE's repeated requests, the firm has not provided the requisite information for monitoring the ratings. In the absence of minimum information required for the purpose of rating, CARE is unable to express opinion on the rating. In line with the extant SEBI guidelines CARE's rating on RN Rice Mill bank facilities will now be denoted as CARE B; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 15.00 CARE B; Issuer Not Facilities Cooperating Detailed description of the key rating drivers At the time of last rating in October 20, 2016 the following were the rating strengths and weaknesses. Key Rating Weaknesses Modest scale of operations The scale of operations have continued to remain modest which inherently limits the company's financial flexibility in times of stress and deprives it of scale benefits. Weak financial risk profile: The profitability margins of the company marked stood low on account of low value addition and highly fragmented nature of industry characterized by intense competition. The capital structure of the company stood highly leveraged due to high dependence on external borrowings to meet the working capital requirements coupled with low partners' capital base. The coverage indicators as characterized by interest coverage ratio and total debt to GCA continues to remain weak on account of low profitability and high debt levels. Elongated operating cycle: The operating cycle of the firm continues to remain elongated. This was mainly on account high average inventory holding days as the peak paddy procurement season is during November to January during which the firm builds up raw material inventory to cater to the milling and processing of rice throughout the year. Fragmented nature of industry coupled with high level of government regulation: The commodity nature of the product makes the industry highly fragmented with numerous players operating in the unorganized sector with very less product differentiation. There are several small scale operators which are not into end-to- end processing of rice from paddy, instead they merely complete a small fraction of processing and dispose-off semi-processed rice to other big rice millers for further processing. Furthermore, the raw material (paddy) prices are regulated by government to safeguard the interest of farmers, which in turn limits the bargaining power of the rice millers. Susceptibility to fluctuation in raw material prices and monsoon dependent operations: Agro-based industry is characterized by its seasonality, as it is dependent on the availability of raw materials, which further varies with different harvesting periods. The price of rice moves in tandem with the prices of paddy. Availability and prices of agro commodities are highly dependent on the climatic conditions. Adverse climatic conditions can affect their availability and leads to volatility in the raw material prices. Paddy is the major raw material and the peak paddy procurement season is during November to January during which the company builds up raw material inventory to cater to the processing of rice throughout the year. Since there is a long time lag between raw material procurement and liquidation of inventory, the firm is exposed to the risk of adverse price movement resulting in lower realization than expected. RNRM was established in 2003 as a proprietorship firm by Mr Rajesh Kumar Bansal. In 2008, the proprietorship firm was converted into partnership firm with Mr Rajesh Kumar Bansal and Mr Mange Ram as its partners; sharing profit and loss in the ratio of 65% and 35%, respectively. RNRM is engaged in milling, processing and trading of rice. The manufacturing unit is located at Kaithal, Haryana, having installed capacity of processing 6 tonnes of paddy/hour as on March 31, 2016. The firm procures raw material i.e. paddy from local grain markets located in Haryana, Delhi, Punjab and nearby states. The firm derives nearly 60% of its sales through exports in Canada, Gulf and South African countries and the rest is through direct supply to the wholesalers in the states of Haryana, M.P, U.P, Punjab, Bihar and Delhi. SAHAKAR MAHARSHI: CARE Lowers Rating on INR35cr LT Loan to B ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Sahakar Maharshi Shankarrao Mohite Patil SSK Limited (SMSSKL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 35.00 CARE B; Stable Revised from Facilities CARE B+; Stable Rating Rationale The revision in rating assigned to the bank facilities of SMSSKL takes into account of the net loss in FY17 (refers to the period April 1, 2016 to March 31, 2017) translating into erosion of net- worth. Further, the rating remains tempered on account of y-o-y degrowth in the total operating income (TOI) led by lower cane availability and subsequent lower crushing season, negative operating profitability, highly leveraged capital structure as on March 31, 2017, weak debt coverage indicators, working capital intensive nature of operations and seasonal and cyclical nature of the sugar industry. The rating continues to factor in the long and established track record of the promoters of more than five decades in the sugar industry coupled, fully integrated scale of operations resulting into de-risking of the core sugar business. The ability of the company to increase its scale of operations by securing sugarcane in the ensuing sugar season, along with improvement in its profitability and efficient management of its working capital going forward shall remain the key rating sensitivities. Detailed description of the key rating drivers Key rating weakness: Financial risk profile marked by de-growth in the total operating income (TOI), negative profitability along with highly leveraged capital structure and modest debt coverage indicators The total operating income (TOI) of the company registered a y-o-y de-growth of 44.04% to INR273.83 crore during FY17 (Audited) on account of non availability of sugar cane and hence lower crushing season. Further, the PBILDT margin of the company deteriorated to -1.70% during FY17 resulting into loss of INR34.99 crore during FY17.The company reported cash loss of INR29.87 crore during FY17. Losses of the company has resulted into erosion of the net-worth base of the company which stood at INR1.30 crore as on March 31, 2017 vis-a-vis INR34.41 crore as on March 31, 2016. The overall gearing of the company deteriorated on account of loss in FY17 and stood at 221.09x as on March 31, 2017. Working capital intensive nature of operations: The operating cycle of the company remained high at 260 days for the year ending March 31, 2017. The inventory days of SMSSKL stood at 314 days during FY17 on account of the higher sugar prices which resulted in increase in finished goods (sugar) inventory prices. The creditor days reduced from 78 days during FY16 to 54 days during FY17. Cyclical and seasonal nature of industry along-with inherent agro- climatic risks: Sugarcane is the key raw material used for the manufacture of sugar and sugar-related products. The availability and yield of sugarcane depends on factors like rainfall, temperature and soil conditions, demand-supply dynamics, government policies etc. The production of sugarcane and hence sugar is cyclical in nature Key rating strengths: Experienced promoters and long track record of the company in sugar manufacturing: Sahakar Maharashi Shankarrao Mohite Patil SSK Limited (SMSSKL) is a co-operative society currently promoted by Mr. Vijaysingh S. Mohite Patil (Chief promoter) to undertake sugar and sugar related production. Mr. Vijaysingh S. Mohite Patil is a former Deputy Chief Minister of Maharashtra and has been minister handling various portfolio including Public Works Department (PWD), Tourism and Rural Development for over 25 years. The day to day operations of the company are managed by Mr. Jaysingh S.Mohite Patil (Chairman) and Mr. Rajendra Nanasaheb Yadav (Managing Director). Fully integrated business operations: SMSSKL is a fully integrated player of the industry having a sugarcane crushing capacity of 7,500 tonnes crush per day(TCD), distillery with the capacity of 60 Kilo litre per day(KLPD), baggase based co-generation plant having the capacity of 33 megawatt(MW) The fully integrated nature of business operations enables diversification of revenue stream. Location advantage with adequate cane availability, albeit worsened by drought conditions: The sugar plant of SMSSKL is located in the sugarcane cultivation area in village Yashwantnagar, Taluka Malshiras, Solapur, Maharashtra. The command area of SMSSKL comprises of seven tehsils with total land under sugarcane cultivation of about 46,000 hectares, translating into availability of nearly 36.0 lakh MT of sugarcane (with an average yield of 80MT/hectare). However, the latest crushing season saw SMSSKL crushing sugarcane to the tune of 3.14lakh MT vis-a-vis 9.82 lakh MT in the previous year, on account of drought conditions, which further impacted the overall performance of the company. SHITAL DIAM: Ind-Ra Migrates 'D' Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Shital Diam's (SD) Long-Term Issuer Rating to 'IND D' from 'IND BB' while migrating the ratings to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. 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: -- INR220 mil. Facilities (Long-term/Short Term) downgraded and migrated to non-cooperating category with IND D(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 11, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. KEY RATING DRIVERS The downgrade reflects SD's ongoing default on debt obligations, details of which are not available. RATING SENSITIVITIES The utilisation of the fund-based limit within the sanctioned limits for at least three consecutive months would lead to a positive rating action. COMPANY PROFILE SD was incorporated as a partnership concern in 1989 by Mr. Mukesh Kantilal Shah, Mr. Hasmukh Kantilal Shah and Mr. Arvind Kantilal Shah. SD primarily manufactures cut and polished diamonds. VTR MARKETING: CARE Moves B- Rating to Issuer Not Cooperating ------------------------------------------------------------- CARE Ratings has been seeking information from VTR Marketing Private Limited. (VMPL) to monitor the ratings vide e-mail communications/letters dated May 5, 2017, September 11, 2017, September 14, 2017 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. Further, VMPL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on VMPL bank facilities will now be denoted as CARE B-; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 7.17 CARE B-; Issuer not Facilities cooperating; based on best available information The rating takes into account relatively small player with short track record of operation coupled with operational loss and cash loss during FY16, risk of non-renewal of dealership agreement from Tata Motors Ltd. (TML), supplier concentration risk and linkage to the fortunes of Tata Motors Ltd., pricing constraints and margin pressure arising out of competition from other auto dealers in the market, working capital intensive nature of operation and high leverage ratio. Moreover, the rating continues to derive strengths by the experienced promoters along with promoters' support however lacking experience in the automobile dealership business, and integrated nature of business. Detailed description of the key rating drivers Key Rating Strengths: Experienced promoter along with promoters' support; however lacking experience in the automobile dealership business The overall affairs of the company are managed by the promoter, Shri Mahendra Shivlal Gandhi (Managing Director) aged 57 years and having thirty six years of experience in the liquor distribution business through its associate entity. However, Mr. Gandhi lacks experience in the automobile dealership business with VMPL being the first venture in this line of operations. He is being duly supported by the other directors along with a team of experienced professionals. Integrated nature of business: The company also provides authorized after sales service and deals in original accessories & spare parts apart from selling PVs' by virtue of being a ?3-S' (Sales, Services and Spare parts) authorized dealer of TML. Owning authorized service centre helps the company to tap a larger client base who prefers to purchase passenger vehicles from dealers having own authorized service centre to avoid hassles in case of breakdown and requirement of service. Key Rating Weaknesses: Relatively small player with short track record of operation coupled with operational loss and cash loss during FY16: VMPL is a relatively small player in the dealership industry having total operating income and net loss of INR51.83 crore and INR0.08 crore respectively in FY16. The tangible net worth also remained low at around INR2.97 crore as on March 31, 2016. The showroom commenced operation since April, 2013. Accordingly, the company has a short track record of operation. Further, VMPL incurred net loss of INR0.08 crore during FY16 in view of lower operating income. Risk of non-renewal of dealership agreement from Tata Motors Ltd. (TML): VMPL has entered into a dealership agreement with Tata Motors Ltd. (TML) in April, 2013. The dealership agreement is valid till 2016 after that the operation will continue subject to renewal of the agreement, completely at the discretion of TML and which is guided by terms and conditions from Tata Motors. Further, the agreement may get terminated at any time on violation of certain clauses. There is no information of renewal of contracts on account of non cooperation. Supplier concentration risk and linkage to the fortunes of Tata Motors Ltd: VMPL, being an authorized dealer of Tata Motors Ltd. (rated CARE AA+), deals in passenger vehicles only from Tata Motors Ltd. Accordingly, its fortunes are linked to the performance of Tata's products. Any shift in customer preference and brand equity will negatively impact VMPL. Pricing constraints and margin pressure arising out of competition from other auto dealers in the market: VMPL faces aggressive competition on account of established presence of authorized dealers of other passenger vehicle manufacturers like Maruti, Honda, Chevrolet, Ford etc. Considering the existing competition, VMPL is required to offer better terms like providing discounts on purchases to attract new customers. Such discounts offered to customers create margin pressure and negatively impact the revenue earning capacity of the company. Further, the revenues of VMPL would also be governed by launch of newer models by TML, and acceptance of the products in the market. Working capital intensive nature of operation: The business of automobile dealership is having inherent high working capital intensity due to high inventory holding. The company has to maintain the fixed level of inventory for display and to guard against supply shortages. Accordingly, the average fund based working capital utilization remained high at 80% during the last 12 months ending August 31, 2017. High leverage ratio: Long term debt equity ratio of VMPL remained high at 2.03 as on Mar.31, 2016 on the back of term loans and unsecured loans (unsubordinated) availed for setting up the unit. The overall gearing ratio also remained high at 4.23x as on \ March 31, 2016 in line with the long term debt equity ratio coupled with higher utilization working capital borrowings to finance its operations. VTR Marketing Private Limited (VMPL) was incorporated in August, 2009 by Gandhi family of Kharagpur, West Bengal. However, the company commenced operations from April, 2013. It is an authorized dealer of Tata Motors Ltd (TML) for its passenger vehicles, spares & accessories in Kharagpur, West Bengal. VMPL has its only vehicle showroom and its warehouse at Kharagpur (West Bengal) where it also provides repair and refurbishment services for TML vehicles. VMPL receives a small portion of its revenue as commission income from TML and from finance and insurance companies for bundled marketing of their products. Shri Mahendra Shivlal Gandhi looks after the day to day operations of the entity along with the other directors coupled with experienced personnel. VMPL is having an associate entity named VTR Marketing engaged in distribution of liquor. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2017. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. *** End of Transmission ***