Rating Advisory

July 18, 2018 | Mumbai Adarsh BirmechaOri ginal Template12 3

Amoli Organics Private Limited

Advisory as on July 18, 2018

This rating advisory is provided in relation to the rating of Amoli Organics Private Limited

The key rating sensitivity factors for the rating include:

 Future capex plans and funding thereof

 Sustainability of revenue growth and margins
 Working capital management

CRISIL Ratings has a policy of keeping its accepted ratings under constant and ongoing
monitoring and review. Accordingly, it seeks regular updates from companies on business and
financial performance. CRISIL is yet to receive adequate information from Amoli Organics Pvt Ltd
(Amoli) to enable it to undertake a rating review. CRISIL is taking all possible efforts to get the
rated entity to cooperate with its rating process for enabling it to carry out the rating review.

CRISIL views information availability risk as a key factor in its assessment of credit risk. (Please
refer to CRISIL Ratings publication dated April 30, 2012 - 'Information Availability - a key risk
factor in credit ratings')

If Amoli continues to delay the provisioning of information required by CRISIL to undertake a

rating review then, in accordance with circular SEBI/HO/MIRSD/MIRSD4/CIR/P/2016/119 dt Nov
1, 2016 and SEBI/HO/MIRSD/ MIRSD4/ CIR/ P/ 2017/ 71 dt June 30, 2017 issued by Securities
and Exchange Board of India, CRISIL will carry out the review based on best available
information and issue a press release.

About The Company

Amoli was incorporated by Mr Manish Doshi and Mr Umed Doshi in 1991. It manufactures bulk
drugs/active pharmaceutical ingredients, and caters primarily to the anti-inflammatory, anti-fungal, and
anti-depressant segments. Its manufacturing facilities are at Vapi and Vadodara in Gujarat.

Please note: This advisory should not be construed as a rating reaffirmation.

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 Rating Rationale
April 24, 2017 | Mumbai

Amoli Organics Private Limited

Rated amount enhanced

Rating Action
Total Bank Loan Facilities Rated Rs.126 Crore (Enhanced from Rs.104 Crore)
Long Term Rating CRISIL BBB/Stable (Reaffirmed)
Short Term Rating CRISIL A3+ (Reaffirmed)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities

Detailed Rationale
CRISIL has reaffirmed its 'CRISIL BBB/Stable/CRISIL A3+' ratings on the bank facilities of Amoli Organics Private
Limited (Amoli).

The ratings continue to reflect the extensive experience of the company's promoters in the pharmaceuticals industry,
and its established relationships with large pharmaceutical companies. The ratings also factor its above-average
financial risk profile because of healthy networth and comfortable gearing and debt protection metrics. These
strengths are partially offset by exposure to intense competition and susceptibility to regulatory changes in the bulk
drugs industry.

Key Rating Drivers & Detailed Description

Strengths
* Promoters' extensive industry experience and established customer relationships: The promoters has been
involved in the pharmaceutical industry for more than four decades and over the years the company has diversified
into different therapeutic segments. It has an established relation with big pharmaceutical companies both in
domestic as well as export market.

* Above-average financial risk profile: The financial risk profile of the company is above average marked by strong
networth and above average gearing and debt protection metrics.

Weaknesses
* Exposure to intense competition: In the API industry Amoli caters to various segments such as anti-
inflammatory, anti-depressant, etc. The domestic API industry is driven by heightened competition due to presence of
a large number of organized and unorganized players in the market.

* Susceptibility to regulatory changes: Being in pharmaceutical industry, the operations of the company remains
susceptible to regulatory changes both in domestic and export markets.
Outlook: Stable
CRISIL believes Amoli will continue to benefit from its promoters' extensive industry experience and its established
relationships with reputed pharmaceutical companies. The outlook may be revised to 'Positive' if there is a significant
improvement in the company's market position and operating efficiency, supported by better working capital
management. The outlook may be revised to 'Negative' if lower-than-expected accrual, sizeable debt-funded capital
expenditure, or stretch in working capital cycle, weakens liquidity.

1
About the Company
Amoli was incorporated by Mr Manish Doshi and Mr Umed Doshi in 1991. It manufactures bulk drugs/active
pharmaceutical ingredients, and caters primarily to the anti-inflammatory, anti-fungal, and anti-depressant segments.
Its manufacturing facilities are at Vapi and Vadodara in Gujarat.

Profit after tax (PAT) was Rs 16.8 crore on net revenue of Rs 317.1 crore in fiscal 2016, against Rs 9.1 crore and Rs
245.5 crore, respectively, in fiscal 2015.

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.

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Annexure - Details of Instrument(s)
Date of Coupon Maturity Issue size Rating Assigned
ISIN Name of instrument
allotment rate (%) date (Rs crore) with Outlook
NA Bank Guarantee NA NA NA 0.90 CRISIL A3+
NA Cash Credit NA NA NA 59.00 CRISIL BBB/Stable
NA Cash Management Service NA NA NA 1.00 CRISIL A3+
External Commercial
NA NA NA NA 13.90 CRISIL BBB/Stable
Borrowings
NA Letter of Credit NA NA NA 19.20 CRISIL A3+
Proposed Long Term Bank
NA NA NA NA 4.25 CRISIL BBB/Stable
Loan Facility
Proposed Short Term Bank
NA NA NA NA 2.50 CRISIL A3+
Loan Facility
NA Term Loan NA NA Jan-2021 5.00 CRISIL BBB/Stable
NA Term Loan NA NA Dec-2020 9.00 CRISIL BBB/Stable
NA Term Loan NA NA Jun-2022 11.25 CRISIL BBB/Stable

Annexure - Rating History for last 3 Years

Start of
Current 2017 (History) 2016 2015 2014
2014

Instrument Type Quantum Rating Date Rating Date Rating Date Rating Date Rating Rating

CRISIL CRISIL CRISIL CRISIL

BBB/Stab BBB/Stab BBB- BBB- CRISIL
Fund-based Bank LT/S No Rating
105.9 le/ 02-09-16 le/ 19-10-15 /Positive/ 31-12-14 /Stable/ BBB-
Facilities T Change
CRISIL CRISIL CRISIL CRISIL /Stable
A3+ A3+ A3 A3

No No
Non Fund-based LT/S CRISIL No Rating CRISIL CRISIL
20.1 02-09-16 Rating Rating
Bank Facilities T A3+ Change A3+ A3
Change Change
Table reflects instances where rating is changed or freshly assigned. 'No Rating Change' implies that there was no rating change under the release.

Annexure - Details of various bank facilities

Current facilities Previous facilities
Amount Amount
Facility Rating Facility Rating
(Rs.Crore) (Rs.Crore)
Bank Guarantee .9 CRISIL A3+ Bank Guarantee .9 CRISIL A3+
CRISIL CRISIL
Cash Credit 59 Cash Credit 59
BBB/Stable BBB/Stable
Cash Management Cash Management
1 CRISIL A3+ 1 CRISIL A3+
Service Service
External Commercial CRISIL External Commercial CRISIL
13.9 13.9
Borrowings BBB/Stable Borrowings BBB/Stable
Letter of Credit 19.2 CRISIL A3+ Letter of Credit 12.7 CRISIL A3+
Proposed Long Term CRISIL Proposed Short Term
4.25 2.5 CRISIL A3+
Bank Loan Facility BBB/Stable Bank Loan Facility
Proposed Short Term CRISIL
2.5 CRISIL A3+ Term Loan 14
Bank Loan Facility BBB/Stable
CRISIL
Term Loan 25.25 -- 0 --
BBB/Stable
Total 126 -- Total 104 --

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Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating criteria for manufaturing and service sector companies
Rating Criteria for the Pharmaceutical Industry
Criteria for rating Short-Term Debt (including Commercial Paper)

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This disclaimer forms part of and applies to each credit rating report and/or credit rating rationale that we provide (each a “Report”). For the avoidance of doubt, the term
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services in jurisdictions where CRISIL does not have the necessary licenses and/or registration to carry out its business activities referred to above. Access or use of this
Report does not create a client relationship between CRISIL and the user.

We are not aware that any user intends to rely on the Report or of the manner in which a user intends to use the Report. In preparing our Report we have not taken into
consideration the objectives or particular needs of any particular user. It is made abundantly clear that the Report is not intended to and does not constitute an investment
advice. The Report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind or
otherwise enter into any deal or transaction with the entity to which the Report pertains. The Report should not be the sole or primary basis for any investment decision
within the meaning of any law or regulation (including the laws and regulations applicable in the US).

Ratings from CRISIL Rating are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any
securities / instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as
of the stated date of their issue. CRISIL assumes no obligation to update its opinions following publication in any form or format although CRISIL may disseminate its
opinions and analysis. CRISIL rating contained in the Report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors
and/or clients when making investment or other business decisions. The recipients of the Report should rely on their own judgment and take their own professional
advice before acting on the Report in any way.

5
Neither CRISIL nor its affiliates, third party providers, as well as their directors, officers, shareholders, employees or agents (collectively, “CRISIL Parties”) guarantee the
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legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Report even if advised of
the possibility of such damages.

CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities
or from obligors. CRISIL’s public ratings and analysis as are required to be disclosed under the regulations of the Securities and Exchange Board of India (and other
applicable regulations, if any) are made available on its web sites, www.crisil.com (free of charge). Reports with more detail and additional information may be available
for subscription at a fee – more details about CRISIL ratings are available here: www.crisilratings.com.

CRISIL and its affiliates do not act as a fiduciary. While CRISIL has obtained information from sources it believes to be reliable, CRISIL does not perform an audit and
undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its Reports. CRISIL keeps certain activities of its business
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information that is not available to other CRISIL business units. CRISIL has established policies and procedures to maintain the confidentiality of certain non-public
information received in connection with each analytical process. CRISIL has in place a ratings code of conduct and policies for analytical firewalls and for managing
conflict of interest. For details please refer to: http://www.crisil.com/ratings/highlightedpolicy.html

CRISIL’s rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For latest rating information on any instrument
of any company rated by CRISIL you may contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (0091) 1800 267 1301.

This Report should not be reproduced or redistributed to any other person or in any form without a prior written consent of CRISIL.

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