Press Release December 04, 2024 SEUTIC LABS PRIVATE LIMITED Rating Downgraded and Issuer not co-operating

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	29.98	ACUITE C | Downgraded | Issuer not co-operating*	-
Bank Loan Ratings	0.02	-	ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding	30.00	-	-
Total Withdrawn	0.00	-	-
* The issuer did not co-operate; based on best available information.

Rating Rationale

­­Acuité has downgraded its long-term rating to 'ACUITE C' (read as ACUITE C) from 'ACUITE BB-' (read as ACUITE double B minus) and its short-term rating to 'ACUITE A4' (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A four plus) to the Rs.30.00 crore bank facilities of Seutic Labs Private Limited (SLPL).  The rating is now flagged as “Issuer Not-Cooperating” and is based on the best information available.  The downgrade is based on the CRIF Highmark report, which shows delays in the unsecured business loan account in November 2024 and also in the cash credit account that shows continous overdrawls of 34 days in October 2024.

About the Company

­Seutic Labs Private Limited was incorporated as a private limited company in 2016 and promoted by Mr. Valivarthi Siva Vara Prasad (holds 60% stake) and his wife Padma Valivarthi (holds 40% stake). The company is engaged in the manufacture bulk drug intermediates. The same have applications in segments of cardiovascular and antibiotics. SLPL has its manufacturing facility at KIADB Industrial Area, Humnabad, Bidar, Karnataka with an installed capacity of 50 Metric Tons Per annum.

Unsupported Rating

Not Applicable

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 non-cooperation 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 endeavoured 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 Sensitivities

­­No information provided by the issuer / available for Acuite to comment upon

Liquidity Position

­­No information provided by the issuer / available for Acuite to comment upon

Outlook: Not Applicable

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Other Factors affecting Rating

­None

Key Financials

Particulars	Unit	FY 23 (Provisional)	FY 22 (Actual)
Operating Income	Rs. Cr.	120.75	137.41
PAT	Rs. Cr.	3.92	0.62
PAT Margin	(%)	3.24	0.45
Total Debt/Tangible Net Worth	Times	2.43	2.87
PBDIT/Interest	Times	2.62	1.74

Status of non-cooperation with previous CRA

­Not Applicable

Any other information

­None

Applicable Criteria

• 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 • Manufacturing Entities: https://www.acuite.in/view-rating-criteria-59.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 18 Sep 2023 Proposed Short Term Bank Facility Short Term 0.02 ACUITE A4+ (Upgraded from ACUITE A4) Cash Credit Long Term 22.00 ACUITE BB- | Stable (Upgraded from ACUITE B+) Term Loan Long Term 0.78 ACUITE BB- | Stable (Upgraded from ACUITE B+) Covid Emergency Line. Long Term 1.30 ACUITE BB- | Stable (Upgraded from ACUITE B+) Covid Emergency Line. Long Term 1.90 ACUITE BB- | Stable (Upgraded from ACUITE B+) Cash Credit Long Term 4.00 ACUITE BB- | Stable (Upgraded from ACUITE B+) 24 Jul 2023 Bills Discounting Short Term 12.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 13.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 5.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) 25 Apr 2022 Bills Discounting Short Term 12.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 13.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) Term Loan Long Term 5.00 ACUITE B+ (Reaffirmed & Issuer not co-operating*) 25 Jan 2021 Bills Discounting Short Term 12.00 ACUITE A4 (Reaffirmed & Issuer not co-operating*) Cash Credit Long Term 13.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-) Term Loan Long Term 5.00 ACUITE B+ (Downgraded & Issuer not co-operating* from ACUITE BB-)

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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 Union Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 22.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB- ) HSBC Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4.00 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB- ) Union Bank of India Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.30 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB- ) Union Bank of India Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.90 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB- ) Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.02 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ ) Union Bank of India Not avl. / Not appl. Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 0.78 Simple ACUITE C | Downgraded | Issuer not co-operating* ( from ACUITE BB- )

* The issuer did not co-operate; based on best available information.

Contacts

Mohit Jain Senior Vice President - Rating Operations Abhishek Singh 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.