Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 18.00 ACUITE B+ | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 12.00 - ACUITE A4 | Reaffirmed | Issuer not co-operating*
Total Outstanding Quantum (Rs. Cr) 30.00 - -
 
Rating Rationale
­Acuité has reaffirmed the long-term rating of ‘ACUITE B+’ (read as ACUITE B plus) and the short-term rating of ‘ACUITE A4’ (read as ACUITE A four) on the Rs. 30.00 crore bank facilities of Seutic Labs Private Limited (SLPL). The rating continues to be flagged as “Issuer Not-Cooperating” on account of information risk.

About the Company
­SLPL was incorporated in 2016 by Mr. Valivarthi Siva Vara Prasad (holds 60 percent stake) and his wife, Ms. Padma Valivarthi (holds 40 percent stake). The company is engaged in manufacture of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. SLPL has its manufacturing facility at Bidar (Karnataka) with an installed capacity of 50 Metric Tons Per annum. FY2018 is the first full year of operation of the company.
 
About the Group
­Seutic Pharma Private Limited (SPPL) was incorporated in July 2014 by Mr. Valivarthi Siva Vara Prasad (holds 60 percent stake) and his wife, Padma Valivarthi (holds 40 percent stake). The company is engaged in the manufacture of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. SPPL has its manufacturing facility at Jeedimetla, Hyderabad (Telangana) in a leased premise with an installed capacity of 35 Metric Tons Per annum.
 
Non-cooperation by the issuer/borrower:
­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 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.
 
Limitation regarding information availability:
­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.
 
Rating Sensitivity
­"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
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 22 (Actual) FY 21 (Actual)
Operating Income Rs. Cr. 189.20 97.37
PAT Rs. Cr. 1.62 1.84
PAT Margin (%) 0.86 1.89
Total Debt/Tangible Net Worth Times 3.73 3.45
PBDIT/Interest Times 2.05 2.18
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
• Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.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.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
25 Apr 2022 Term Loan Long Term 5.00 ACUITE B+ ( Issuer not co-operating*)
Bills Discounting Short Term 12.00 ACUITE A4 ( Issuer not co-operating*)
Cash Credit Long Term 13.00 ACUITE B+ ( Issuer not co-operating*)
25 Jan 2021 Cash Credit Long Term 13.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Term Loan Long Term 5.00 ACUITE B+ (Downgraded and Issuer not co-operating*)
Bills Discounting Short Term 12.00 ACUITE A4 (Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating
Union Bank of India Not Applicable Bills Discounting Not Applicable Not Applicable Not Applicable 12.00 Simple ACUITE A4 | Reaffirmed | Issuer not co-operating*
Union Bank of India Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 13.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
Union Bank of India Not Applicable Term Loan Not available Not available Not available 5.00 Simple ACUITE B+ | Reaffirmed | Issuer not co-operating*
­

Contacts
Analytical Rating Desk
About Acuité Ratings & Research
Acuité Ratings & Research Limitedwww.acuite.in