Rating Rationale
April 06, 2020 | Mumbai
Responsive Industries Limited
Ratings reaffirmed and Withdrawn
 
Rating Action
Total Bank Loan Facilities Rated Rs.240 Crore
Long Term Rating CRISIL BBB+/Negative (Rating reaffirmed and Withdrawn)
Short Term Rating CRISIL A2 (Rating reaffirmed and Withdrawn)
1 crore = 10 million
Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale

CRISIL has reaffirmed its ratings on the bank facilities of Responsive Industries Limited (Responsive; part of the Responsive group) and subsequently withdrawn at the company's request and on receipt of no-objection certificate from the banker. The withdrawal is in line with CRISIL's policy on withdrawal of its ratings.

Analytical Approach

For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Responsive and its subsidiaries, Axiom Cordages Ltd (Axiom) and Responsive Industries Ltd, Hong Kong. That's because these companies, together referred to as the Responsive group, have common management and suppliers.CRISIL has also amortised goodwill on consolidation over five fiscals, beginning fiscal 2014.

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

About the Group

Responsive was incorporated in 1982 in Mumbai. Its products include PVC (polyvinyl chloride) flooring, automotive upholstery solutions, fast-moving consumer durables, pharmaceutical packaging, and transparent sheeting.Axiom manufactures shipping ropes. The group's facilities are in Boisar near Palghar, Maharashtra

For the first nine months of fiscal 2020, consolidated profit after tax (PAT) was Rs 29 crore on net operating revenue of Rs 422  crore, against Rs 41 crore and Rs 674 crore, respectively, for the corresponding period of the previous fiscal.

Key Financial Indicators - (Consolidated)
As on/For the period ended March 31 2019 2018
Revenue (net of excise) Rs crore 775 1247
Adjusted PAT Rs crore 29 -3.9
Adjusted PAT Margin % 3.8 -0.3
Adjusted debt/ Adjusted networth Times 0.13 0.27
Interest coverage Times 10.17 7.5

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 Cash Credit NA NA NA 180.0 Withdrawn
NA Letter of Credit NA NA NA 60.00 Withdrawn
 
Annexure - List of entities consolidated
Name of the company Extent of consolidation Rationale for consolidation
Axiom Cordages Limited Fully consolidated Subsidiary Company
Responsive industries Ltd, Hong Kong Fully consolidated Subsidiary Company
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  180.00  Withdrawn      31-01-19  CRISIL BBB+/Negative      29-11-17  CRISIL BBB+/Negative  CRISIL A-/Negative 
Non Fund-based Bank Facilities  LT/ST  60.00  Withdrawn      31-01-19  CRISIL A2      29-11-17  CRISIL A2  CRISIL A2+ 
All amounts are in Rs.Cr.
Annexure - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Crore) Rating Facility Amount (Rs.Crore) Rating
Cash Credit 180 Withdrawn Cash Credit 180 CRISIL BBB+/Negative
Letter of Credit 60 Withdrawn External Commercial Borrowings 125 Withdrawn
-- 0 -- Letter of Credit 60 CRISIL A2
-- 0 -- Proposed Long Term Bank Loan Facility 205 Withdrawn
Total 240 -- Total 570 --
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
CRISILs Criteria for Consolidation
CRISILs Criteria for rating short term debt

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