RATING RATIONALE
30Mar2023

Aprica Pharmaceuticals Pvt. Ltd.

Brickwork Ratings downgrades the long term rating and reaffirms the short term rating for the Bank Loan Facilities aggregating of Rs. 20.40 Crs. of Aprica Pharmaceuticals Pvt. Ltd., while retaining the ratings in the "Issuer Not Cooperating" category based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(01 Apr 2022)
Present
Fund Based 20.00 20.00 Long Term BWR B /Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B - /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
(5.00) (5.00)
Non Fund Based 0.40 0.40 Short Term BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 20.40 20.40 (Rupees Twenty Crores and Forty lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

In view of the non-availability of the information and lack of cooperation from the issuer, Brickwork Ratings has downgraded the rating of the long term bank loan facilities of Aprica Pharmaceuticals Pvt. Ltd. for Rs. 20.00 crores to BWR B-/Stable, and has reaffirmed the rating of their short term bank loan facilities of Rs. 0.40 crores at BWR A4 (aggregate rated amount Rs. 20.40 crores), while retaining the same in the Issuer Not Cooperating’ category, based on best available information as the Issuer did not cooperate.

The Initial Rating of Aprica Pharmaceuticals Pvt. Ltd. for Bank Loan Facilities of Rs.20.40 Crores was done on 21 Dec 2015 and ratings of BWR BB with Stable Outlook and BWR A4 were assigned. The rating was moved to Not Reviewed Category on 21 Apr 2017. Subsequently, due to lack of cooperation from the issuer,  despite continued follow up to enable us to carry out a review and based on Banker’s feedback on the Company, the long-term ratings was downgraded to BWR BB-/Stable and the short-term rating was reaffirmed at BWR A4 and moved to “Issuer Not Cooperating” category on 16 Oct 2019 for the first time. The rating was downgrade to BWR B+/Stable and BWR A4 with continuation in the Issuer Not Cooperating Category on 28 Dec 2020. Further The long term rating was downgraded to BWR B/Stable and the short term rating was reaffirmed at BWR A4 with continuation of the rating in the Issuer Not Cooperating category on 01 Apr 2022.
 
The rating is due for a review in April 2023. BWR took up with the issuer and its banker over emails and through telephone calls to provide the required information. Despite the best efforts of BWR to get at least the minimum required information for a review, neither the company nor its banker has provided the same. In the absence of adequate information from the company and its banker, BWR is unable to assess the company’s financial performance or its ability to service its debt and maintain a valid rating. The company has also been irregular with respect to the submission of the monthly No Default Statements. Hence, based on best available information, continued lack of management cooperation, non submission of NDS, and lack of banker’s feedback, the long term rating is downgraded and the short term rating is reaffirmed, and continued in the Issuer Not Cooperating* category, as the Issuer did not cooperate.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non cooperation by the rated entities to provide the required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account the possible deterioration in the credit quality of the rated entity arising from its non- transparency and withholding of the information required for a review of the rating.

ABOUT THE ENTITY

The Aprica Pharmaceuticals Pvt Ltd was incorporated on 16th August 2011 as a private limited company and commercial operations was started on October 2012.The company's registered office is located in Ahmedabad.It is an ISO 9001:2008 certified company.The company is engaged in sales and marketing of medicines for cardiac and diabetic ailments under its own brand names.The medicines manufactured as per APPL specification by the leading contract manufacturers such as, Morepen Laboratories Ltd, Gland Pharma Ltd, Mascot Health Series Pvt Ltd and United Biotech India Pvt. Ltd.The company has 3 offices in Ahmedabad and 7 warehouses located in the industrial area, Ahmedabad.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

NA

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 20.00
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
01Apr2022
BWR B Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
28Dec2020
BWR B+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
FB SubLimit LT (5.00)
BWR B-/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
01Apr2022
BWR B Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
28Dec2020
BWR B+ Stable
(Downgrade/ISSUER NOT COOPERATING*)
Non Fund Based ST 0.40
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
01Apr2022
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
28Dec2020
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
Grand Total 20.40 (Rupees Twenty Crores and Forty lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Chinmaya R

Rating Analyst chinmaya.r@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Aprica Pharmaceuticals Pvt. Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 State Bank Of India (SBI) Cash CreditSanctioned 20.00 _ 20.00
Sub-Limit (EPC/PCFC/FBD/E BR/EBD(Sub Limit of CC)) Sanctioned (5.00)
2 State Bank Of India (SBI) Credit Exposure Limit (CEL)Sanctioned _ 0.40 0.40
Total 20.00 0.40 20.40
TOTAL (Rupees Twenty Crores and Forty lakhs Only)
Print and Digital Media

The Rating Rationale is sent to you for the sole purpose of dissemination through your print, digital or electronic media. While it may be used by you acknowledging credit to BWR, please do not change the wordings in the rationale to avoid conveying a meaning different from what was intended by BWR. BWR alone has the sole right of sharing (both direct and indirect) its rationales for consideration or otherwise through any print or electronic or digital media.

About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 12,000 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.

Disclaimer

Brickwork Ratings India Pvt. Ltd. (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by the Reserve Bank of India [RBI], offers credit ratings of Bank Loan facilities, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. [ hereafter referred to as "Instruments"]. BWR also rates NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations.

BWR wishes to inform all persons who may come across Rating Rationales and Rating Reports provided by BWR that the ratings assigned by BWR are based on information obtained from the issuer of the instrument and other reliable sources, which in BWR's best judgment are considered reliable. The Rating Rationale / Rating Report & other rating communications are intended for the jurisdiction of India only. The reports should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in Europe and also the USA).

BWR also wishes to inform that access or use of the said documents does not create a client relationship between the user and BWR.

The ratings assigned by BWR are only an expression of BWR's opinion on the entity / instrument and should not in any manner be construed as being a recommendation to either, purchase, hold or sell the instrument.

BWR also wishes to abundantly clarify that these ratings are not to be considered as an investment advice in any jurisdiction nor are they to be used as a basis for or as an alternative to independent financial advice and judgment obtained from the user's financial advisors. BWR shall not be liable to any losses incurred by the users of these Rating Rationales, Rating Reports or its contents. BWR reserves the right to vary, modify, suspend or withdraw the ratings at any time without assigning reasons for the same.

BWR's ratings reflect BWR's opinion on the day the ratings are published and are not reflective of factual circumstances that may have arisen on a later date. BWR is not obliged to update its opinion based on any public notification, in any form or format although BWR may disseminate its opinion and analysis when deemed fit.

Neither BWR nor its affiliates, third party providers, as well as the directors, officers, shareholders, employees or agents (collectively, "BWR Party") guarantee the accuracy, completeness or adequacy of the Ratings, and no BWR Party shall have any liability for any errors, omissions, or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the Rating Rationales or Rating Reports. Each BWR Party disclaims all express or implied warranties, including, but not limited to, any warranties of merchantability, suitability or fitness for a particular purpose or use. In no event shall any BWR Party be liable to any one for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Rating Rationales and/or Rating Reports even if advised of the possibility of such damages. However, BWR or its associates may have other commercial transactions with the company/entity. BWR and its affiliates do not act as a fiduciary.

BWR keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of BWR may have information that is not available to other BWR business units. BWR has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

BWR clarifies that it may have been paid a fee by the issuers or underwriters of the instruments, facilities, securities etc., or from obligors. BWR's public ratings and analysis are made available on its web site, www.brickworkratings.com. More detailed information may be provided for a fee. BWR's rating criteria are also generally made available without charge on BWR's website.

This disclaimer forms an integral part of the Ratings Rationales / Rating Reports or other press releases, advisories, communications issued by BWR and circulation of the ratings without this disclaimer is prohibited.

BWR is bound by the Code of Conduct for Credit Rating Agencies issued by the Securities and Exchange Board of India and is governed by the applicable regulations issued by the Securities and Exchange Board of India as amended from time to time.