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.
ParticularsFacilities** | 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) |
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 ENTITYMacro 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.
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
Not Applicable
ANY OTHER INFORMATIONNot 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) |
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 |
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.
Instrument | Issue Date | Amount (Rs.Crs) | Coupon Rate (%) | Maturity Date | ISIN Particulars | Complexity of the Instrument |
---|---|---|---|---|---|---|
Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
---|---|---|---|
Nil | Nil | Nil | Nil |
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