Press Release May 26, 2025 LAKSHANYA VENTURES PRIVATE LIMITED (ERSTWHILE - ENCARTA PHARMA PRIVATE LIMITED) Rating Downgraded and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	25.90	ACUITE C | Downgraded	-
Bank Loan Ratings	39.35	ACUITE D | Downgraded	-
Bank Loan Ratings	12.50	-	ACUITE A4 | Reaffirmed
Total Outstanding	77.75	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

­Acuité has downgraded its long-term rating to 'ACUITE D' (read as ACUITE D) from ‘ACUITE B+’ (read as ACUITE B Plus) on the Rs.39.35 crore bank facilities of Lakshanya Ventures Private Limited ( Erstwhile Encarta Pharma Private Limited) (LVPL). Acuité has also downgraded its long-term rating to 'ACUITE C' (read as ACUITE C) from ‘ACUITE B+’ (read as ACUITE B Plus)  and reaffirmed its short term rating of 'ACUITE A4' (read as ACUITE A Four) on the Rs.38.40 crore bank facilities of Lakshanya Ventures Private Limited (Erstwhile Encarta Pharma Private Limited) (LVPL). Rationale of Rating Downgrade The downgrade is on account of delays in servicing of debt obligations by LVPL as confirmed by its banker through a written communication along with reported delays in debt servicing as observed in credit bureau information report (CRIF) of the issuer, latest in the month of September 2024.

About the Company

­Lakshanya Ventures Private Limited (LVPL), a Bangalore-based company was incorporated in 2001. Founded by Mr. Keerthan P, Mr. Ganesh R. Nayak and Mr. Girish M, the company is engaged in primarily four segments - Cardiac & Endovascular Implants, ICU & OT Equipment’s, Setting up of Medical Gas Pipeline and Construction of Modular Operation Theatres. The present directors of the company are Mr. Ganesh R. Nayak, Mr. Girissh Maheswarappa, Mr. Sharath S. Shetty and Mr. Pichamutal K. Premsagar.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has considered the standalone business and financial risk profile of LVPL to arrive at the rating.

Key Rating Drivers

Strengths

­Experienced management and diversified product portfolio LVPL promoters possess over two decades of experience in the medical equipment trading business. The company benefits from established relationships with Hospital and Medical equipment OEMs. The product portfolio contains Cardiac & Endovascular Implants, ICU & OT Equipment’s, Setting up of Medical Gas Pipeline and Construction of Modular Operation Theatres. Acuité believes that the market potential, healthy and reputed client base and diversified product portfolio of LVPL are expected to support in improvement of business risk profile over the medium term.

Weaknesses

­Instance of delay in servicing of debt obligation  Instances of delays in debt-servicing have been reported in the month of September 2024 as per the Credit Bureau Information report (CRIF) of the company and confirmation from the lender.

Rating Sensitivities

­ ­Timely servicing of debt obligations

Liquidity Position

Stretched

The company's ­liquidity position is marked stretched due to instances of delays in servicing of debt obligation as per CRIF report and bankers written feedback.

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 24 (Actual)	FY 23 (Actual)
Operating Income	Rs. Cr.	78.90	269.02
PAT	Rs. Cr.	8.88	18.92
PAT Margin	(%)	11.25	7.03
Total Debt/Tangible Net Worth	Times	0.62	0.85
PBDIT/Interest	Times	2.64	5.13

Status of non-cooperation with previous CRA (if applicable)

­Not Applicable

Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite)

Not applicable

Any other information

­None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm

Note on complexity levels of the rated instrument

­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.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 04 Apr 2024 Bank Guarantee (BLR) Short Term 7.75 ACUITE A4 (Upgraded from ACUITE D) Letter of Credit Short Term 4.75 ACUITE A4 (Upgraded from ACUITE D) Cash Credit Long Term 20.00 ACUITE B+ | Stable (Upgraded from ACUITE D) Term Loan Long Term 36.50 ACUITE B+ | Stable (Upgraded from ACUITE D) Stand By Line of Credit Long Term 3.00 ACUITE B+ | Stable (Upgraded from ACUITE D) Term Loan Long Term 2.85 ACUITE B+ | Stable (Upgraded from ACUITE D) Working Capital Term Loan Long Term 1.71 ACUITE B+ | Stable (Upgraded from ACUITE D) Term Loan Long Term 0.63 ACUITE B+ | Stable (Upgraded from ACUITE D) Proposed Long Term Loan Long Term 0.56 ACUITE B+ | Stable (Upgraded from ACUITE C) 21 Sep 2023 Proposed Long Term Loan Long Term 0.06 ACUITE C (Downgraded from ACUITE B+) Proposed Long Term Loan Long Term 0.50 ACUITE C (Assigned) Cash Credit Long Term 20.00 ACUITE D (Downgraded from ACUITE B+) Term Loan Long Term 36.50 ACUITE D (Assigned) Stand By Line of Credit Long Term 3.00 ACUITE D (Assigned) Term Loan Long Term 2.85 ACUITE D (Downgraded from ACUITE B+) Working Capital Term Loan Long Term 1.71 ACUITE D (Downgraded from ACUITE B+) Term Loan Long Term 0.63 ACUITE D (Downgraded from ACUITE B+) Bank Guarantee (BLR) Short Term 7.75 ACUITE D (Downgraded from ACUITE A4) Letter of Credit Short Term 4.75 ACUITE D (Downgraded from ACUITE A4) 09 Aug 2023 Bank Guarantee (BLR) Short Term 7.75 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Letter of Credit Short Term 4.75 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Proposed Bank Guarantee Short Term 5.25 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 20.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) 12 May 2022 Bank Guarantee/Letter of Guarantee Short Term 7.75 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Letter of Credit Short Term 4.75 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Proposed Bank Guarantee Short Term 5.25 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 20.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating State Bank of India Not avl. / Not appl. Bank Guarantee (BLR) Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 7.75 Simple ACUITE A4 | Reaffirmed State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 20.00 Simple ACUITE C | Downgraded ( from ACUITE B+ ) State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.75 Simple ACUITE A4 | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.56 Simple ACUITE C | Downgraded ( from ACUITE B+ ) State Bank of India Not avl. / Not appl. Stand By Line of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.00 Simple ACUITE C | Downgraded ( from ACUITE B+ ) State Bank of India Not avl. / Not appl. Term Loan 14 Dec 2021 Not avl. / Not appl. 14 Dec 2026 2.85 Simple ACUITE D | Downgraded ( from ACUITE B+ ) State Bank of India Not avl. / Not appl. Term Loan 29 Oct 2022 Not avl. / Not appl. 29 Oct 2032 36.50 Simple ACUITE D | Downgraded ( from ACUITE B+ ) State Bank of India Not avl. / Not appl. Term Loan 31 Jul 2021 Not avl. / Not appl. 31 Jul 2026 0.63 Simple ACUITE C | Downgraded ( from ACUITE B+ ) State Bank of India Not avl. / Not appl. Working Capital Term Loan 14 Dec 2021 Not avl. / Not appl. 14 Dec 2026 1.71 Simple ACUITE C | Downgraded ( from ACUITE B+ )

Contacts

Mohit Jain Senior Vice President - Rating Operations Sahil Sawant Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.