Product Quantum (Rs. Cr) Long Term Rating Short Term Rating
Bank Loan Ratings 8.36 ACUITE B+ | Downgraded | Issuer not co-operating* -
Bank Loan Ratings 31.64 - ACUITE A4 | Downgraded | Issuer not co-operating*
Total Outstanding 40.00 - -
 
Rating Rationale

­Acuité has downgraded its long-term rating to ‘ACUITE B+’ (read as ACUITE B plus) from ‘ACUITE BB-‘ (read as ACUITE Double B minus) and short-term rating to 'ACUITE A4' (read as ACUITE A four) from 'ACUITE A4+' (read as ACUITE A four plus) on the Rs.40.00 crore bank facilities of QVC EXPORTS LIMITED (ERSTWHILE QVC EXPORTS PRIVATE LIMITED) .
The rating is now flagged as “Issuer Not Cooperating” and is based on the best available information. The downgrade is based on Information risk.

About the Company
­Incorporated in 2005, QVC Exports Limited is a Kolkata-based company engaged in trading of metals and minerals, such as iron, steel, ferroalloys (silico manganese, high carbon Ferro chromes among others) copper, nickel, aluminium, manganese ore, coal and coke. Ferro alloys products are mostly exported to European countries, whereas other products are sold in the domestic markets. It is promoted by Mr Nilesh Sharma, who has over a decade of experience in the same line of business
Directors of QVC Exports Private Limited are Ms. Madhu Sharma, Mr. Nilesh Kumar Sharma, Mr. Santosh Kumar Das, Mr. Esanoo Kanjilal, Mr. Pramod Kumar Choudhari, and Mr. Abhiraj Kumar.
 
About the Group
­QVC International Private Limited was incorporated in the year 2007 by Mr. Sumit Kumar and family. Later, in 2010, the company was taken over by the current management, Mr. Nilesh Kumar Sharma and family. The company is engaged in trading of manganese ore and Ferroalloys. The company has its registered office at Kolkata, district of West Bengal. The directors are Mr. Nilesh Kumar Sharma and Mr. Rajendra Sharma Kumar.
 
Unsupported Rating
­Not Applicable
 
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 an 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 has endeavoured 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 Sensitivities
­No information provided by the issuer / available for Acuite to comment upon.
 
Liquidity Position
­No information provided by the issuer / available for Acuite to comment upon.
 
Outlook: Not Applicable
­
 
Other Factors affecting Rating
­None
 

Particulars Unit FY 23 (Actual) FY 22 (Actual)
Operating Income Rs. Cr. 243.28 146.11
PAT Rs. Cr. 2.80 1.00
PAT Margin (%) 1.15 0.68
Total Debt/Tangible Net Worth Times 1.07 0.94
PBDIT/Interest Times 2.54 2.36
Status of non-cooperation with previous CRA
­Not Applicable
 
Any other information
­None
 
Applicable Criteria
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Trading Entitie: https://www.acuite.in/view-rating-criteria-61.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
04 May 2023 Cash Credit Long Term 2.00 ACUITE BB- | Stable (Reaffirmed)
Covid Emergency Line. Long Term 3.55 ACUITE BB- | Stable (Reaffirmed)
PC/PCFC Short Term 12.00 ACUITE A4+ (Reaffirmed)
Proposed Long Term Loan Long Term 2.81 ACUITE BB- | Stable (Reaffirmed)
Proposed Short Term Bank Facility Short Term 1.89 ACUITE A4+ (Reaffirmed)
Bills Discounting Short Term 9.75 ACUITE A4+ (Reaffirmed)
Letter of Credit Short Term 8.00 ACUITE A4+ (Reaffirmed)
03 Feb 2022 Covid Emergency Line. Long Term 3.55 ACUITE BB- | Stable (Downgraded from ACUITE BB)
PC/PCFC Short Term 12.00 ACUITE A4+ (Reaffirmed)
Proposed Short Term Bank Facility Short Term 1.89 ACUITE A4+ (Reaffirmed)
Proposed Long Term Loan Long Term 2.81 ACUITE BB- | Stable (Downgraded from ACUITE BB)
Letter of Credit Short Term 8.00 ACUITE A4+ (Reaffirmed)
Bills Discounting Short Term 9.75 ACUITE A4+ (Reaffirmed)
Cash Credit Long Term 2.00 ACUITE BB- | Stable (Downgraded from ACUITE BB)
04 Jan 2021 Bills Discounting Short Term 9.75 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Cash Credit Long Term 2.00 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ | Stable)
Letter of Credit Short Term 8.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
PC/PCFC Short Term 12.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Proposed Short Term Loan Short Term 4.00 ACUITE A4+ (Reaffirmed & Issuer not co-operating*)
Proposed Long Term Loan Long Term 4.25 ACUITE BB (Downgraded & Issuer not co-operating* from ACUITE BB+ | Stable)
­

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum
(Rs. Cr.)
Complexity Level Rating
State Bank of India Not avl. / Not appl. Bills Discounting Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 9.75 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
State Bank of India Not avl. / Not appl. Cash Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.00 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
State Bank of India Not avl. / Not appl. Covid Emergency Line. Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 3.55 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
State Bank of India Not avl. / Not appl. Letter of Credit Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 8.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
State Bank of India Not avl. / Not appl. PC/PCFC Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 12.00 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2.81 Simple ACUITE B+ | Downgraded | Issuer not co-operating* ( from ACUITE BB- )
Not Applicable Not avl. / Not appl. Proposed Short Term Bank Facility Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1.89 Simple ACUITE A4 | Downgraded | Issuer not co-operating* ( from ACUITE A4+ )
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr.No. Company Name
1 QVC EXPORTS LIMITED (ERSTWHILE QVC EXPORTS PRIVATE LIMITED)
2 QVC INTERNATIONAL PRIVATE LIMITED
 

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