Rating Rationale
October 12, 2022 | Mumbai
Orbit Exports Limited
Issuer not cooperating, based on best-available information; Ratings continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.57.83 Crore
Long Term RatingCRISIL B /Stable (ISSUER NOT COOPERATING*)
Short Term RatingCRISIL 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 Ratings has been consistently following up with Orbit Exports Ltd (OEL) through letters and emails dated July 30, 2022 and August 30, 2022 among others, apart from telephonic communication, for obtaining information. 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 OEL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on OEL is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of OEL continues to be ‘CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating’.

About the Company

OEL, incorporated in 1983 as Orbit Exports Pvt Ltd was reconstituted as a public limited company in 1994. It is currently headed by Mr Pankaj Seth and his wife, Ms Anisha Seth, who acquired the company in 2004. OEL is listed on the Bombay Stock Exchange and the National Stock Exchange. It manufactures and exports fancy fabrics, and operates across multiple verticals in the value-added fabric market, from women’s apparel to Christmas crafts and home decor, with special interests in occasion-specific fabrics and finished products. The company is based in Mumbai with manufacturing facilities in Surat, Gujarat, and in Bhiwandi, Maharashtra.

Key Financial Indicators

Particulars

Unit

2022

2021

Revenue

Rs.Crore

123

65

Profit After Tax (PAT)

Rs.Crore

16

1

PAT Margin

%

12.9

1.5

Adjusted debt/adjusted networth

Times

0.21

0.06

Adjusted Interest coverage

Times

18.1

11.3

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

Rupee Term Loan

NA

NA

Not Available

30.78

NA

CRISIL B/Stable/Issuer Not Cooperating

NA

Foreign Exchange Forward

NA

NA

NA

2.55

NA

CRISIL A4/Issuer Not Cooperating

NA

Bank Guarantee

NA

NA

NA

1.0

NA

CRISIL A4/Issuer Not Cooperating

NA

Cash Credit**

NA

NA

NA

23.5

NA

CRISIL B/Stable/Issuer Not Cooperating

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

**Includes sublimit of export packing credit/packing credit in foreign currency/export bill discounting of Rs.21 crore

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/ST 56.83 CRISIL A4 / CRISIL B /Stable(Issuer Not Cooperating)*   -- 14-07-21 CRISIL A4 / CRISIL B /Stable(Issuer Not Cooperating)* 01-04-20 CRISIL BB+ /Stable / CRISIL A4+ (Issuer Not Cooperating)* 27-02-19 CRISIL A2+ / CRISIL A- /Stable(Issuer Not Cooperating)* CRISIL A2+ / CRISIL A- /Stable(Issuer Not Cooperating)*
      --   --   -- 21-01-20 CRISIL BBB+ /Stable / CRISIL A2 (Issuer Not Cooperating)*   -- --
Non-Fund Based Facilities ST 1.0 CRISIL A4 (Issuer Not Cooperating)*   -- 14-07-21 CRISIL A4 (Issuer Not Cooperating)* 01-04-20 CRISIL A4+ (Issuer Not Cooperating)* 27-02-19 CRISIL A2+ (Issuer Not Cooperating)* CRISIL A2+ (Issuer Not Cooperating)*
      --   --   -- 21-01-20 CRISIL A2 (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
Bank Guarantee 1 CRISIL A4 (Issuer Not Cooperating)*
Cash Credit** 17.5 CRISIL B/Stable (Issuer Not Cooperating)*
Cash Credit** 6 CRISIL B/Stable (Issuer Not Cooperating)*
Foreign Exchange Forward 2.31 CRISIL A4 (Issuer Not Cooperating)*
Foreign Exchange Forward 0.24 CRISIL A4 (Issuer Not Cooperating)*
Rupee Term Loan 30.78 CRISIL B/Stable (Issuer Not Cooperating)*

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

**Includes sublimit of export packing credit/packing credit in foreign currency/export bill discounting of Rs.21 crore

 

Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
Rating criteria for manufaturing and service sector companies
CRISILs Bank Loan Ratings - process, scale and default recognition
Assessing Information Adequacy Risk

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