Rating Rationale
May 31, 2021 | Mumbai
Sybly Industries Limited
Issuer not cooperating, based on best-available information; Rating continues to be ‘CRISIL C Issuer not cooperating'
 
Rating Action
Total Bank Loan Facilities RatedRs.15 Crore
Long Term RatingCRISIL C (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 Sybly Industries Limited (SIL) for obtaining information through letters and emails dated October 24, 2020 and April 20, 2021 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 SIL, which restricts CRISIL Ratings’ ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SIL is consistent with ‘Assessing Information Adequacy Risk’. Based on the last available information, the ratings on bank facilities of SIL continues to be ‘CRISIL C Issuer Not Cooperating’.

About the Company

Established in May 1988, SIL is promoted by Mr Mahesh Chand Mittal and his son, Mr Nishant Mittal. It manufactures polyester yarn and trades in cotton fabrics. SIL's plant is in Muradnagar, Uttar Pradesh. The company is listed on the Bombay Stock Exchange.

Key Financial Indicators

As on / for the period ended March 31

Unit

2020

2019

Operating income

Rs crore

18.47

30.1

Reported profit after tax (PAT)

Rs crore

0.26

(1.04)

PAT margin

%

0.01

(3.47)

Adjusted debt/adjusted networth

Times

1.08

1.25

Interest coverage

Times

(0.8)

0.5

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)

Complexity Levels

Rating Assigned with Outlook

NA

Cash Credit

NA

NA

NA

11

NA

CRISIL C/Issuer Not Cooperating

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

4

NA

CRISIL C/Issuer Not Cooperating

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

Annexure - Rating History for last 3 Years
  Current 2021 (History) 2020  2019  2018  Start of 2018
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 15.0 CRISIL C (Issuer Not Cooperating)*   -- 28-02-20 CRISIL C (Issuer Not Cooperating)*   -- 15-11-18 CRISIL C CRISIL B-/Watch Developing
      --   --   --   -- 20-08-18 CRISIL B-/Watch Developing --
      --   --   --   -- 22-05-18 CRISIL B-/Watch Developing --
      --   --   --   -- 23-02-18 CRISIL B-/Watch Developing --
All amounts are in Rs.Cr.
* - 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
Cash Credit 11 CRISIL C (Issuer Not Cooperating)* Cash Credit 11 CRISIL C (Issuer Not Cooperating)*
Proposed Long Term Bank Loan Facility 4 CRISIL C (Issuer Not Cooperating)* Proposed Long Term Bank Loan Facility 4 CRISIL C (Issuer Not Cooperating)*
Total 15 - Total 15 -
* - Issuer did not cooperate; based on best-available information
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
Rating Criteria for Cotton Textile Industry
Rating Criteria for Steel Industry
CRISILs Approach to Recognising Default
CRISILs Criteria for Consolidation

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