Rating Rationale
August 29, 2022 | Mumbai
Arvee Laboratories (India) Limited
Issuer not cooperating, based on best-available information; Rating continues to be ‘CRISIL B-/Stable Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.14 Crore
Long Term RatingCRISIL B- /Stable (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 Ratings has been consistently following up with Arvee Laboratories (India) Limited (ALPL) for obtaining information through letters and emails dated May 10, 2022 and July 27, 2022 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 Ratings failed to receive any information on either the financial performance or strategic intent of ALPL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ALPL is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of ALPL continues to be ‘CRISIL B-/Stable Issuer Not Cooperating’.

About the Company

ALPL, incorporated in 2012, is promoted by Mr. Shalin Bharat Chokshi and Mr. Sudhakarbhai Chhotabhai Patel. The company manufactures polymer modifiers, drug intermediaries, and contrast media intermediaries used in the textile, pharmaceutical, fertiliser, and other industries. Its facility is in Ahmedabad, Gujarat.

Key Financial Indicators

 

Q1FY23

FY22

Revenue

18.21

40.79

Profit After Tax (PAT)

1.14

2.57

Operating Profit Margin (OPM)

12.47

15.03

Net Profit Margin (NPM)

6.26

6.30

Source: Company’s website

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings' complexity levels are assigned to various types of financial instruments. The CRISIL Ratings' complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL Ratings' complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.

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

Cash Credit

NA

NA

NA

5.5

NA

CRISIL B-/Stable/Issuer Not Cooperating

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

4.44

NA

CRISIL B-/Stable/Issuer Not Cooperating

NA

Term Loan

NA

NA

Not Available

4.06

NA

CRISIL B-/Stable/Issuer Not Cooperating

*Issuer did not cooperate; based on best-available information

Annexure - Rating History for last 3 Years
  Current 2022 (History) 2021  2020  2019  Start of 2019
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 14.0 CRISIL B- /Stable(Issuer Not Cooperating)*   -- 30-06-21 CRISIL B- /Stable(Issuer Not Cooperating)* 30-03-20 CRISIL B- /Stable(Issuer Not Cooperating)*   -- CRISIL B- /Stable(Issuer Not Cooperating)*
All amounts are in Rs.Cr.
* - Issuer did not cooperate; based on best-available information
 
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Rating
Cash Credit 5.5 CRISIL B- /Stable(Issuer Not Cooperating)*
Proposed Long Term Bank Loan Facility 4.44 CRISIL B- /Stable(Issuer Not Cooperating)*
Term Loan 4.06 CRISIL B- /Stable(Issuer Not Cooperating)*
* - Issuer did not cooperate; based on best-available information
Criteria Details
Links to related criteria
Assessing Information Adequacy Risk

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