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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 4.00 | ACUITE B+ | Downgraded | Issuer not co-operating* | - |
| Bank Loan Ratings | 11.00 | - | ACUITE A4 | Downgraded | Issuer not co-operating* |
| Total Outstanding | 15.00 | - | - |
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Rating Rationale |
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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.15.00 crore bank facilities of QVC International 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 |
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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. |
| About the Group |
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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 |
| Unsupported Rating |
| Not Applicable |
| Non-cooperation by the issuer/borrower |
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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.
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| Limitation regarding information availability |
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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.
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| 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 |
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| 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 |
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• 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 |
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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
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||
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