RATING RATIONALE
30Aug2023

Nectar Lifesciences Limited

Brickwork Ratings downgrades the long term rating and reaffirms short term rating for the Bank Loan Facilities of Rs.1215.91Crs. of Nectar Lifesciences Limited based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(06 Jul 2022)
Present
Fund Based 858.67 858.67 Long Term BWR B+ /Stable
Upgrade
BWR B /Stable
ISSUER NOT COOPERATING* /Downgrade
Non Fund Based 357.24 357.24 Short Term BWR A4
Upgrade
BWR A4
ISSUER NOT COOPERATING* /Reaffirmation
Grand Total 1215.91 1215.91 (Rupees One Thousand Two Hundred Fifteen Crores and Ninety One 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

The ratings were due for annual review on 6 July, 2023. BWR took up with the issuer via emails apart from telephone calls to provide requisite information as required for review of ratings. Despite the best efforts of BWR to get the minimum required information for a review, the entity has not provided the same. Further, the company has not submitted monthly “No Default Statement” (NDS) as required by regulatory guidelines. Due to the lack of management cooperation and the absence of adequate information, BWR was unable to assess the Company’s financial performance and its ability to service its debt and maintain a valid rating. Hence, based on the best available information, BWR has downgraded the long term ratings to BWR B/Stable and reaffirmed short term ratings to BWR A4 while migrated the ratings to the ISSUER NOT COOPERATING* category.  

The lenders/investors may note to exercise due caution while using the above rating which mentions "Issuer Not Cooperating" since the rating lack any projections or forward looking component as it is arrived at based on the best available information without any management/banker's interaction.

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 information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Healthcare Healthcare Pharmaceuticals & Biotechnology Pharmaceuticals

Nectar Lifesciences Ltd (NLL), a public listed company based in Chandigarh, mainly manufactures specialized pharmaceutical intermediates, APIs,  phytochemicals (menthol), finished dosage formulations (FDF) along with Empty Hard Gelatin Capsule Shells. NLL was incorporated in 1995 and presently is one of the largest manufacturers of the Cephalosporin range of products in India. NLL is promoted by Mr. Sanjiv Goyal, who has over three decades of experience in the pharma business.

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

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Available

ANY OTHER INFORMATION

Not Available

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 858.67
BWR B/Stable
(ISSUER NOT COOPERATING* /Downgrade)
06Jul2022
BWR B+ Stable
(Upgrade)
12Jul2021
BWR D
(Downgrade)
07Sep2020
BWR A Stable
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
07Oct2020
BWR A- Negative
(Downgrade)
0.00
NA
NA
NA
NA
NA
27Nov2020
BWR BBB- Credit Watch with Developing Implications
(Downgrade)
0.00
NA
NA
NA
NA
NA
24Dec2020
BWR BBB- Credit Watch with Developing Implications
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
22Feb2021
BWR BBCredit Watch with Negative Implications
(Downgrade)
Non Fund Based ST 357.24
BWR A4
(ISSUER NOT COOPERATING* /Reaffirmation)
06Jul2022
BWR A4
(Upgrade)
12Jul2021
BWR D
(Downgrade)
07Sep2020
BWR A2+
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
07Oct2020
BWR A2+
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
27Nov2020
BWR A3 Credit Watch with Developing Implications
(Downgrade)
0.00
NA
NA
NA
NA
NA
24Dec2020
BWR A3 Credit Watch with Developing Implications
(Reaffirmation)
0.00
NA
NA
NA
NA
NA
22Feb2021
BWR A4 Credit Watch with Negative Implications
(Downgrade)
Grand Total 1215.91 (Rupees One Thousand Two Hundred Fifteen Crores and Ninety One 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

Akanksha

Senior Rating Analyst akanksha@brickworkratings.com

Ravi Rashmi Dhar

Associate Director - Ratings ravi.d@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Nectar Lifesciences Limited
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 Axis Bank Ltd. Cash CreditSanctioned 36.20 _ 36.20
2 Export Import Bank of India Term LoanOut-standing 4.64 _ 4.64
3 Export Import Bank of India Working Capital Demand LoanOut-standing 77.76 _ 77.76
4 Jammu and Kashmir Bank Term LoanOut-standing 105.28 _ 105.28
5 Jammu and Kashmir Bank Cash CreditSanctioned 26.80 _ 26.80
6 Jammu and Kashmir Bank Working Capital Demand LoanOut-standing 13.89 _ 13.89
7 Jammu and Kashmir Bank BG/LC/ILCSanctioned _ 21.49 21.49
8 Punjab National Bank BG/LC/ILCSanctioned _ 201.52 201.52
9 Punjab National Bank Letter of GuaranteeSanctioned _ 10.40 10.40
10 Punjab National Bank Cash CreditSanctioned 247.00 _ 247.00
11 Punjab National Bank Working Capital Term LoanSanctioned 80.65 _ 80.65
12 State Bank Of India (SBI) Working Capital Demand LoanOut-standing 49.45 _ 49.45
13 State Bank Of India (SBI) Cash CreditSanctioned 217.00 _ 217.00
14 State Bank Of India (SBI) ILC/FLC/BGSanctioned _ 123.83 123.83
Total 858.67 357.24 1215.91
TOTAL (Rupees One Thousand Two Hundred Fifteen Crores and Ninety One lakhs Only)
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