Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 490.00 ACUITE D | Reaffirmed | Issuer not co-operating* -
Bank Loan Ratings 110.00 - ACUITE D | Reaffirmed | Issuer not co-operating*
Total Outstanding 600.00 - -
 
Rating Rationale

­Acuité has reaffirmed the long-term rating of ‘ACUITE D’ (read as ACUITE D) and the short term rating of ‘ACUITE D’ (read as ACUITE D) on the Rs.600.00 Cr bank facilities of Karvy Data Management Services Limited. The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

About the Company
­The Hyderabad-based KDMSL, part of the Karvy group, was incorporated in 2008 and was promoted by Mr. C. Parthasarathy, Mr. V. Mahesh and Mr. V. Ganesh. The Karvy group is a three-decade old diversified financial services conglomerate with presence in stock broking, data management, institutional equities, wealth management and asset management services. Karvy Stock Broking Limited (KSBL) is the flagship company of the group and holds 30 percent stake in KDMSL with the balance 70 percent held by Karvy Realty India Limited (KRIL). KDMSL undertakes E-Governance projects, back office processing, data management services for the government and also for industries such as telecom, banking sectors among others.
 
Non-cooperation by the issuer/borrower:
­Acuité has been requesting for data, information and undertakings from the rated entity for conducting surveillance & review of the rating. However, the issuer/borrower failed to submit such information before the due date.
Acuité believes that information risk is a critical component in such ratings, and non-cooperation by the issuer along with unwillingness to provide information could be a sign of potential deterioration in its overall credit quality.
This rating is, therefore, being flagged as “Issuer not-cooperating”, in line with prevailing SEBI regulations and Acuité’s policies.
 
Limitation regarding information availability:
­The rating is based on information available from sources other than the issuer/borrower (in the absence of information provided by the issuer/borrower). Acuité endeavored to gather information about the entity/industry from the public domain. Therefore, Acuité cautions lenders and investors regarding the use of such information, on which the indicative credit rating is based.
 
Rating Sensitivity
­"No information provided by the issuer / available for Acuite to comment upon."
 
All Covenants
­Not Applicable
 
Liquidity Position
­"No information provided by the issuer / available for Acuite to comment upon."
 
Outlook
­Not Applicable
 
Other Factors affecting Rating
­Not Applicable
 

Particulars Unit FY 20 (Actual) FY 19 (Actual)
Operating Income Rs. Cr. 382.54 753.26
PAT Rs. Cr. 16.40 33.28
PAT Margin (%) 4.29 4.42
Total Debt/Tangible Net Worth Times 2.84 2.62
PBDIT/Interest Times 1.65 2.23
Status of non-cooperation with previous CRA
­­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
Note on Complexity Levels of the Rated Instrument
­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’ s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.
 

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook
15 Sep 2022 Cash Credit Long Term 220.00 ACUITE D ( Issuer not co-operating*)
Proposed Bank Facility Long Term 158.15 ACUITE D ( Issuer not co-operating*)
Term Loan Long Term 111.85 ACUITE D ( Issuer not co-operating*)
Bank Guarantee Short Term 110.00 ACUITE D ( Issuer not co-operating*)
17 Jun 2021 Bank Guarantee Short Term 110.00 ACUITE D ( Issuer not co-operating*)
Term Loan Long Term 111.85 ACUITE D ( Issuer not co-operating*)
Cash Credit Long Term 220.00 ACUITE D ( Issuer not co-operating*)
Proposed Bank Facility Long Term 158.15 ACUITE D ( Issuer not co-operating*)
17 Mar 2020 Term Loan Long Term 111.85 ACUITE D (Downgraded and Issuer not co-operating*)
Proposed Bank Facility Long Term 158.15 ACUITE D (Downgraded and Issuer not co-operating*)
Bank Guarantee Short Term 110.00 ACUITE D (Downgraded and Issuer not co-operating*)
Cash Credit Long Term 220.00 ACUITE D (Downgraded and Issuer not co-operating*)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)		 Complexity Level Rating
State Bank of India Not Applicable Bank Guarantee (BLR) Not Applicable Not Applicable Not Applicable 110.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
State Bank of Mauritius Ltd Not Applicable Cash Credit Not Applicable Not Applicable Not Applicable 220.00 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Not Applicable Not Applicable Proposed Long Term Bank Facility Not Applicable Not Applicable Not Applicable 158.15 Simple ACUITE D | Reaffirmed | Issuer not co-operating*
Bank of India Not Applicable Term Loan Not available Not available Not available 111.85 Simple ACUITE D | Reaffirmed | Issuer not co-operating*

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