Rating Rationale
December 28, 2020 | Mumbai
Alpa Laboratories Limited
Issuer not cooperating, based on best-available information; Ratings Revised to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities Rated Rs.16 Crore
Long Term Rating CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING')*
Short Term Rating CRISIL A4 (ISSUER NOT COOPERATING; Revised from 'CRISIL A4+ ISSUER NOT COOPERATING')*
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
*Issuer did not cooperate; based on best-available information
Please note that the rating(s) are based on best available information with the credit rating agency: the entity whose debt is being published via this press release did not provide the requisite information needed to conduct the rating exercise and is therefore classified as 'non cooperative'.
Non cooperation by Issuer

CRISIL has been consistently following up with Alpa Laboratories Limited (ALL) for obtaining information through letters and emails dated October 24, 2020 and November 14, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative.
 
'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ALL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on ALL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ALL revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.

About the Company

Alpa Laboratories; WHO-GMP and ISO 9001:2000 certified company, manufactures a wide range of products under its own brand and for a number of other reputed Indian and multinational companies. The product range includes a wide variety of ethical, generic and over the counter (OTC) drugs in various Finished Dosage Forms for both human and veterinary use.

Key Financial Indicators
As on / for the period ended March 31  Unit 2020 2019
Operating income Rs crore 85.97 77.99
Reported profit after tax Rs crore 4.1 2.73
PAT margin % 4.77 3.5
Adjusted debt/Adjusted networth Times 0 0.01
Interest coverage Times 32.2 10.67

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments and are included (where applicable) in the Annexure -- Details of Instrument in this Rating Rationale. For more details on the CRISIL complexity levels, please visit www.crisil.com/complexity-levels.
Annexure - Details of Instrument(s)*
ISIN Name of Instrument Date of Allotment Coupon
Rate (%)
Maturity Date Issue
Size
(Rs. Cr)
Complexity Levels Rating Assigned  with Outlook
NA Bank Guarantee NA NA NA 1 NA CRISIL A4/Issuer Not Cooperating
NA Cash Credit NA NA NA 14 NA CRISIL B/Stable/Issuer Not Cooperating
NA Letter of Credit NA NA NA 1 NA CRISIL A4/Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
Annexure - Rating History for last 3 Years
  Current 2020 (History) 2019  2018  2017  Start of 2017
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  14.00  CRISIL B/Stable (Issuer Not Cooperating)*      25-09-19  CRISIL BB+/Stable (Issuer Not Cooperating)*  26-06-18  CRISIL BB+/Stable (Issuer Not Cooperating)*  13-01-17  CRISIL BB+/Stable  -- 
Non Fund-based Bank Facilities  LT/ST  2.00  CRISIL A4 (Issuer Not Cooperating)*      25-09-19  CRISIL A4+ (Issuer Not Cooperating)*  26-06-18  CRISIL A4+ (Issuer Not Cooperating)*  13-01-17  CRISIL A4+  -- 
All amounts are in Rs.Cr.
*Issuer did not cooperate; based on best-available information
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Bank Guarantee 1 CRISIL A4/Issuer Not Cooperating Bank Guarantee 1 CRISIL A4+/Issuer Not Cooperating
Cash Credit 14 CRISIL B/Stable/Issuer Not Cooperating Cash Credit 14 CRISIL BB+/Stable/Issuer Not Cooperating
Letter of Credit 1 CRISIL A4/Issuer Not Cooperating Letter of Credit 1 CRISIL A4+/Issuer Not Cooperating
Total 16 -- Total 16 --
Links to related criteria
Assessing Information Adequacy Risk
CRISILs Approach to Financial Ratios
CRISILs Rating criteria for Real Estate SPVs
Rating Criteria for Fast Moving Consumer Goods Industry
CRISILs Bank Loan Ratings

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