July 03, 2014
Mumbai
Zyden Gentec Limited
 
Ratings Suspended
 
Total Bank Loan Facilities Rated Rs.79 Million
Long Term Rating Suspended
Short Term Rating Suspended
(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Zyden Gentec Ltd (ZGL). The suspension of ratings is on account of non-cooperation by ZGL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ZGL is yet to provide adequate information to enable CRISIL to assess ZGL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'

About the Company

ZGL, promoted by Mr. Vinod Gupta, manufactures active pharmaceutical ingredients (APIs) and API Intermediates (bulk drugs). During 2004-05 (refers to financial year, April 1 to March 31), ZGL set up its bulk drugs manufacturing plant near Hyderabad. Also, in 2010-11, the company set up another bulk drugs manufacturing plant at Kota (Rajasthan); the plant commenced commercial production in October 2010. In 2011-12, ZGL derived all its revenues from its Kota plant, as its Hyderabad plant was non-operational during that year.

Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Million) Rating Facility Amount (Rs.Million) Rating
Cash Credit 26 Suspended Cash Credit 26 CRISIL D
Letter of Credit 7.5 Suspended Letter of Credit 7.5 CRISIL D
Proposed Long Term Bank Loan Facility 2.6 Suspended Proposed Long Term Bank Loan Facility 2.6 CRISIL D
Term Loan 32.9 Suspended Term Loan 32.9 CRISIL D
Working Capital Demand Loan 10 Suspended Working Capital Demand Loan 10 CRISIL D
Total 79 -- Total 79 --
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July 03, 2014

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