RATING RATIONALE
10Jul2024

Sudarshan Pharma Industries Ltd.

Brickwork Ratings downgrades the ratings for the Bank Loan Facilities of Rs. 50.00 Crs. of Sudarshan Pharma Industries Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(30 Jun 2023)
Present
Fund Based 40.00 40.00 Long Term BWR BB+/Stable
ISSUER NOT COOPERATING* /Downgrade
BWR BB /Stable
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Non Fund Based 10.00 10.00 Short Term BWR A4+
ISSUER NOT COOPERATING* /Downgrade
BWR A4
Continues to be in ISSUER NOT COOPERATING* category/Downgraded
Grand Total 50.00 50.00 (Rupees Fifty Crores 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

Brickwork Ratings (BWR) has consistently taken up with Sudarshan Pharma Industries Ltd. (SPIL or the company) through emails and telephone calls to provide the requisite information for periodic rating surveillance. Despite the best efforts of BWR to get at least the minimum required information for a review, the company continues to remain non-cooperative. Further, the company is not submitting the monthly No Default Statement (NDS) in deviation from the extant guidelines. Due to the continued lack of management cooperation and the absence of adequate information from the company, BWR is unable to assess the company's operational and financial performance, its ability to service its debt and maintain a valid rating. Hence, based on the best available information, continued lack of management cooperation, non-submission of monthly NDS and in terms of extant regulatory requirements, BWR has downgraded the ratings to BWR BB/Stable/A4 and continued them in 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 lacks any projections or forward-looking component as it is arrived at based on the best available information without any management/bankers' interaction.

*Issuer did not cooperate; based on best available information

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 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.

 

ANALYTICAL APPROACH - Standalone

BWR has relied upon the standalone financials of Sudarshan Pharma Industries Ltd. and publicly available information to arrive at its ratings. BWR has applied its rating methodology as detailed in the Rating Criteria as per the hyperlinks.

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

Sudarshan Pharma Industries Ltd (SPIL or the company) was incorporated as ‘Sudarshan Specialty Chemsolve Private Limited’ in 2008 at Mumbai. The company was subsequently named ‘Sudarshan Pharma Industries Private Limited’ which turned public in 2017. SPIL is engaged in jobwork manufacturing in pharmeceutical Items and trading in chemicals and solvents in India. The company operates in the states of Maharashtra, Gujarat, Himachal Pradesh and Uttarakhand. Mr. Hemal V Mehta and Mr. Sachin V Mehta are the company's promoters.

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 Applicable

ANY OTHER INFORMATION

Not Available

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 40.00
BWR BB/Stable
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
30Jun2023
BWR BB+Stable
(ISSUER NOT COOPERATING* /Downgrade)
11Apr2022
BWR BBB- Stable
(Assignment)
NA
NA
Non Fund Based ST 10.00
BWR A4
(Continues to be in ISSUER NOT COOPERATING* category/Downgraded)
30Jun2023
BWR A4+
(ISSUER NOT COOPERATING* /Downgrade)
11Apr2022
BWR A3
(Assignment)
NA
NA
Grand Total 50.00 (Rupees Fifty Crores Only)
Hyperlink/Reference to applicable Criteria
Analytical Contacts

Swarn Saurabh

Assistant Manager - Ratings swarn.s@brickworkratings.com

Niraj Kumar Rathi

Director Ratings niraj.r@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Sudarshan Pharma Industries 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.) Complexity of the Instrument
1 Axis Bank Ltd. Cash CreditSanctioned 5.00 _ 5.00 Simple##
2 Axis Bank Ltd. Cash CreditProposed 10.00 _ 10.00 Simple##
3 Axis Bank Ltd. Letter of CreditSanctioned _ 5.00 5.00 Simple##
4 Axis Bank Ltd. Letter of CreditProposed _ 5.00 5.00 Simple##
5 Union Bank of India Cash CreditSanctioned 17.00 _ 17.00 Simple##
6 Union Bank of India Cash CreditProposed 8.00 _ 8.00 Simple##
Total 40.00 10.00 50.00
TOTAL (Rupees Fifty Crores Only)

##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.

ANNEXURE-II
INSTRUMENT DETAILS

InstrumentIssue DateAmount (Rs.Crs)Coupon Rate (%)Maturity DateISIN ParticularsComplexity of the Instrument
NilNilNilNilNilNilNil

ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
NilNilNilNil

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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 11,560 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.

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