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CRISIL has assigned its ‘P4’ rating to the bank facilities of VNKC Agrocom Pvt Ltd (VNKC).
The rating reflects VNKC’s weak financial risk profile, marked by high total outstanding liabilities to tangible net worth ratio, small net worth and moderate interest coverage ratio, the fragmented nature of the agro-commodity trading business, and its exposure to risks related to product concentration. These weaknesses are partially offset by the significant growth in VNKC’s topline, and its established customer and supplier relationships.
About the Company
VNKC was established by Mr. Kunal Kotecha and Mr. Vipul Kanabar in Ahmedabad (Gujarat). The company trades in groundnuts, maize, wheat, bajra, and millets. The company is a ‘Three Star Export House’, as certified by the Government of India, and has customers in countries such as Indonesia, Philippines, Malaysia, Thailand, and Vietnam.
VNKC reported a profit after tax (PAT) of Rs.1.18 million on net sales of Rs.1.0 billion for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of Rs.4.7 million on net sales of Rs.1.23 billion for 2008-09.
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Mitu Samar
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Tanuja Abhinandan
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Gurpreet S Chhatwal
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Manish Kumar Gupta
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