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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 45.20 | ACUITE B- | Reaffirmed | Issuer not co-operating* | - |
| Bank Loan Ratings | 16.00 | - | ACUITE A4 | Reaffirmed | Issuer not co-operating* |
| Total Outstanding Quantum (Rs. Cr) | 61.20 | - | - |
| Total Withdrawn Quantum (Rs. Cr) | 0.00 | - | - |
| Rating Rationale |
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Acuité has reaffirmed its long-term rating of ‘ACUITE B-’ (read as ACUITE B Minus) and short term rating of 'ACUITE A4' (read as ACUITE A four) on the Rs. 61.20 Cr bank facilities of EVERTOGEN LIFE SCIENCES LIMITED (Evertogen). The rating is now an indicative rating and is based on the best available information |
| About the Company |
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Evertogen Life Sciences Limited (erstwhile Optimus Generics Limited) was incorporated on January 11, 2013 as a subsidiary of Glochem Industries Private Limited to enter into the formulations business. Subsequently, on June 9, 2015, GIPL transferred its holding in Evertogen to its group company; GIL Agro Private Limited; (GAPL). Presently, Evertogen is a 51:49 JointVenture (JV) between Glochem group and Organosyn Life Sciences Private Ltd (Organosyn).
Based in Hyderabad, Telangana, Evertogen is engaged in manufacturing of formulations i.e. finished dosages with Capacity of 2 billion units per annum (Tablets – 1,800 million; Capsules – 200 million; Sachets – 15 million) at its facilities located in the Special Economic Zone (SEZ), Green Industrial Park, Jadcherla, Mahaboobnagar Dist. of Telangana. Besides, Evertogen is also engaged in business of product development and contract manufacturing. The plant commenced commercial production from December, 2014. Evertogen is promoted and managed by Mr. Kattamuri Subbarao who has more than three decades of experience in the pharmaceutical industry. |
| Non-cooperation by the issuer/borrower |
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Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer / borrower failed to submit such information before the due date. Acuité believes that information risk is a critical component in such ratings, and noncooperation by the issuer along with an unwillingness to provide information could be a sign of potential deterioration in its overall credit quality. This rating is therefore being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
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| Limitation regarding information availability |
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The rating is based on information available from sources other than the issuer / borrower (in the absence of information provided by the issuer / borrower). Acuité endeavored to gather information about the entity / industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.
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| Rating Sensitivities |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Material Covenants |
| None |
| Liquidity Position |
| "No information provided by the issuer / available for Acuite to comment upon." |
| Outlook: |
| Not applicable |
| Key Financials: |
| The issuer has not shared the latest financial statement for Acuite to comment |
| Status of non-cooperation with previous CRA |
| None |
| Any other information |
| Acuité is yet to receive the latest No Default Statement (NDS) from the rated entity, despite repeated requests and follow-ups. |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm |
| Note on Complexity Levels of the Rated Instrument |
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In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in
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