Rating Rationale
September 27, 2017 | Mumbai
Lincoln Pharmaceuticals Limited
Issuer not cooperating, based on best-available information; Ratings Reaffirmed
Rating Action
Total Bank Loan Facilities Rated Rs.63.41 Crore
Long Term Rating CRISIL BBB+/Negative (Issuer Not Cooperating; Rating Reaffirmed)*
Short Term Rating CRISIL A3+ (Issuer Not Cooperating; Rating Reaffirmed)*
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 Lincoln Pharmaceuticals Limited (LPL) for obtaining information through letters and emails dated May 25, 2017 and July 12, 2017, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward-looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company.'

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 LPL. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes that the information available for LPL is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB category rating or lower'. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL BBB+/Negative/CRISIL A3+'.

About the Company

LPL was set up as a partnership firm in 1979; it was reconstituted as a public limited company in January 1995. It manufactures and sells pharmaceuticals formulations, with focus on new drug delivery systems.

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL 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)
Rating Assigned  with Outlook
NA Bank Guarantee NA NA NA 2 CRISIL A3+/Issuer Not Cooperating
NA Cash Credit NA NA NA 32 CRISIL BBB+/Negative/Issuer Not Cooperating
NA Letter of Credit NA NA NA 10 CRISIL A3+/Issuer Not Cooperating
NA Proposed Long Term Bank Loan Facility NA NA NA 1.16 CRISIL BBB+/Negative/Issuer Not Cooperating
NA Rupee Term Loan NA NA Jun-19 9.58 CRISIL BBB+/Negative/Issuer Not Cooperating
NA Standby Letter of Credit NA NA NA 3 CRISIL BBB+/Negative/Issuer Not Cooperating
NA Standby Line of Credit NA NA NA 3.75 CRISIL BBB+/Negative/Issuer Not Cooperating
NA Supplier Line of Credit NA NA NA 1.92 CRISIL BBB+/Negative/Issuer Not Cooperating
*Issuer did not cooperate; based on best-available information
Annexure - Rating History for last 3 Years
  Current 2017 (History) 2016  2015  2014  Start of 2014
Instrument Type Quantum Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund-based Bank Facilities  LT/ST  48.41  CRISIL BBB+/Negative (Issuer Not Cooperating)*    No Rating Change  25-02-16  CRISIL BBB+/Negative    No Rating Change    No Rating Change  CRISIL BBB+/Stable 
Non Fund-based Bank Facilities  LT/ST  15  CRISIL BBB+/Negative/ CRISIL A3+ (Issuer Not Cooperating)*    No Rating Change  25-02-16  CRISIL BBB+/Negative/ CRISIL A3+    No Rating Change    No Rating Change  CRISIL BBB+/Stable/ CRISIL A3+ 
Table reflects instances where rating is changed or freshly assigned. 'No Rating Change' implies that there was no rating change under the release.
*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 2 CRISIL A3+/Issuer Not Cooperating Bank Guarantee 2 CRISIL A3+
Cash Credit 32 CRISIL BBB+/Negative/Issuer Not Cooperating Cash Credit 32 CRISIL BBB+/Negative
Letter of Credit 10 CRISIL A3+/Issuer Not Cooperating Letter of Credit 10 CRISIL A3+
Proposed Long Term Bank Loan Facility 1.16 CRISIL BBB+/Negative/Issuer Not Cooperating/Issuer Not Cooperating Proposed Long Term Bank Loan Facility 1.16 CRISIL BBB+/Negative
Rupee Term Loan 9.58 CRISIL BBB+/Negative/Issuer Not Cooperating Rupee Term Loan 9.58 CRISIL BBB+/Negative
Standby Letter of Credit 3 CRISIL BBB+/Negative/Issuer Not Cooperating Standby Letter of Credit 3 CRISIL BBB+/Negative
Standby Line of Credit 3.75 CRISIL BBB+/Negative/Issuer Not Cooperating Standby Line of Credit 3.75 CRISIL BBB+/Negative
Supplier Line of Credit 1.92 CRISIL BBB+/Negative/Issuer Not Cooperating Supplier Line of Credit 1.92 CRISIL BBB+/Negative
Total 63.41 -- Total 63.41 --
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Framework for Assessing Information Adequacy Risk
Rating criteria for manufaturing and service sector companies
Rating Criteria for the Pharmaceutical Industry
CRISILs Criteria for Consolidation
Criteria for rating Short-Term Debt (including Commercial Paper)

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