Rating Rationale

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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Last updated: May, 2013

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July 03, 2014	http://www.crisil.com