RATING RATIONALE
27Aug2021

Provestment Services Ltd.

Brickwork Ratings downgraded the long term rating and reaffirms the short term rating for the Bank Loan Facilities of Rs. 7.00 Crs. of Provestment Services Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(10 Jun 2020)
Present
Fund Based 6.00 6.00 Long Term BWR B+ ISSUER NOT COOPERATING/Stable
Downgrade/ISSUER NOT COOPERATING*
BWR B - /Stable
Downgrade/ISSUER NOT COOPERATING*
Non Fund Based 1.00 1.00 Short Term BWR A4 ISSUER NOT COOPERATING
Downgrade/ISSUER NOT COOPERATING*
BWR A4
Reaffirmation/ISSUER NOT COOPERATING*
Grand Total 7.00 7.00 (Rupees Seven Crores Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

Brickwork Ratings downgraded the long term rating  and reaffirmed the short term rating for the bank loan facilities of Rs. 7.00 Crs. of Provestment Services Ltd. to BWR B- (Stable) / A4 ISSUER NOT COOPERATING, based on best available information. BWR has rated the bank loan facilities of Provestment Services Ltd. in Jun 2020 and assigned BWR B+ (Stable) / A4 ISSUER NOT COOPERATING. 

BWR took up with the issuer to provide required complete information over email. Despite the best efforts of BWR to get at least the minimum required information for a review, the Company has not provided the same. In the absence of adequate information from the issuer, BWR is unable to assess the issuer’s financial performance and its ability to service its debt and maintain a valid rating. Hence on account of inadequate information and lack of management cooperation, BWR recommends placing the rating under the category of ISSUER NOT COOPERATING.

The lenders/investors may note to exercise due caution while using the above ratings which mentions ‘ISSUER NOT COOPERATING’ since the ratings lack any projections or forward looking component as it is arrived based on the best available information on the Company without any management/banker’s interaction.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, noncooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress.

ABOUT THE ENTITY

Provestment Services Ltd. (PSL), located in Delhi, was incorporated on 11 th May, 1994 as a Private Limited company and was formerly known as Provestment Capital Services Private Limited. The Company became a public limited company during the year 1995. The name of the company was changed to Provestment Services Limited in November, 1998. Provestment Services Ltd is primarily into Tours and Travel business. Additionally, the company also provides other services such as corporate consulting which includes project advisory services, management advisory services, debt syndication, private equity tie-ups etc. Under Tours & Travels umbrella, the company offers wide range of services such as organizing.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2021) 2021 (History) 2020 2019 2018
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating Date Rating
Fund Based LT 6.00
BWR B-/Stable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
10Jun2020
BWR B+ ISSUER NOT COOPERATINGStable
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
Non Fund Based ST 1.00
BWR A4
(Reaffirmation/ISSUER NOT COOPERATING*)
NA
NA
10Jun2020
BWR A4 ISSUER NOT COOPERATING
(Downgrade/ISSUER NOT COOPERATING*)
NA
NA
NA
NA
Grand Total 7.00 (Rupees Seven Crores Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - NA

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Analytical Contacts

Dimple Nathalal Bhut

Ratings Analyst Board : +91 80 4040 9940 dimple.b@brickworkratings.com

Nagaraj K

Associate Director - Ratings Board : +91 80 4040 9940 nagaraj.ks@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Provestment Services Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Punjab & Sind Bank OverdraftSanctioned 6.00 _ 6.00
2 Punjab & Sind Bank Sales Invoice DiscountingSanctioned _ 0.50 0.50
3 Punjab & Sind Bank Bank GuaranteeSanctioned _ 0.50 0.50
Total 6.00 1.00 7.00
TOTAL (Rupees Seven Crores Only)
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